Weekly Estimate for the Japanese Yen: 140 Key for USD/JPY Before U.S. Economic Indicators

Market Analytics and Technical Considerations

Key Points

• USD is setting the terms, but a significant fundamental week coming up could turn the tide.

• The 140.00 inflection point is significant according to technical analysis for near-term lateral skew.

Technical prediction for the Japanese Yen: 50-50

With less volatility due to the American Thanksgiving holiday, the Japanese Yen appears to close the week strongly. The USD has come under pressure following the FOMC statements, which repeated moderate interest rate hikes, along with the less intense market activity. High-impact occurrences will be spread out over the course of the week, with most of the attention on the United States (see economic calendar). The highlights will be the core inflation print and Non-Farm Payroll (NFP), which could either shift in favor of or against the prevailing narrative of “moderate amounts,” giving USD/JPY bulls hope.

Technical Analytics

The market action on the daily USD/JPY chart is positioned between the 137.67 swing bottom and the psychological resistance handle at 140.00. Whereas the Relative Strength Index (RSI) has only just recently left the oversold region, the reaction to the FOMC minutes may cause investors’ perceptions of the dollar to shift. This can entail searching for downside as soon as the dollar begins to appreciate. The underlying drivers indicated above and market response around in the crucial 140.00 area will be the main topics of the coming week. A weekly close either above or below 140.00 the following week could cause a short-term directional bias in light of the data volume being absorbed.

Important resistance levels

142.25 \s140.00

Important support levels:

137.67 \s135.00

Simple Moving Averages – (Weekly)

Weekly Technical Indicators

USD/JPY