Market Overview

USD/JPY Forecast: Technically Bullish Scope To Retest November High

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USD/JPY Forecast: Technically Bullish Scope To Retest November High

USD/JPY Current Price: 109.06

  • The Japanese yen remains pressured by optimism related to the US-China trade relationship
  • US Consumer Confidence edged lower in November, weighed on US Treasury yields.
  • USD/JPY technically bullish scope to retest November high at 109.48.

The USD/JPY pair is trading at around 109.10 as the American session comes to an end, having traded as high as 109.20 at the beginning of the day. Optimism about US-China gave the pair a boost during Asian trading hours, although it was unable to hold on to gains and retreated to 108.87. The late recovery was led by modest gains in Wall Street and encouraging comments from US President Trump, which anyway weren’t enough to trigger a relevant breakout.

US Treasury yields, in the meantime, remained depressed, edging marginally lower daily basis after a report indicated that US Consumer Confidence fell in November. Earlier in the day, Japan released the October Corporate Service Price Index, which surprised to the upside by rising to 2.1% from 0.5%. This Wednesday, the country won’t release macroeconomic data.

USD/JPY Short-Term Technical Outlook

From a technical point of view, the USD/JPY pair is bullish, as, in the 4-hour chart, it further advanced above all of its moving averages, with the 20 SMA about to cross above the 100 SMA. Technical indicators remain within positive levels but lack directional strength. The pair is currently battling with the 23.6% retracement of this month rally between 107.88/109.11, while the daily low converges with the 38.2% retracement of the mentioned rally at 108.85, providing support.

Image Sourced from Pixabay

Posted-In: FXStreetNews Forex Global Markets General

 

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