What Could Take USD/JPY to 110?

What Could Take USD/JPY to 110?

What Could Take USD/JPY to 110?

USD/JPY fell sharply at the end of last week on the back of falling U.S. rates. Data was mixed with personal spending and income growth slowing but manufacturing activity in the Chicago region accelerating. Looking it will be a big week for the U.S. dollar with ISM reports, minutes from the most recent FOMC meeting and nonfarm payrolls scheduled for release. If the minutes confirm that the Fed is in no rush to raise interest rates again, the dollar could retreat but if they contain a general tone of optimism, we could see 113 in USD/JPY. With that in mind, NFPs is the most important piece of data to watch because economists are looking for slower job growth. If they are right, it could be a nail in the coffin for the dollar sending USD/JPY to 110

Technically, 112 is near term resistance in USDJPY but there’s a lot of resistance between 112.75 and 113. There’s no support on the other hand until 110.

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