USD/JPY Forecast: U Turn seems to be closer than expected

USDJPY 6th May, 2015

USDJPY Analysis

USD/JPY trend is not that clear during the last 2 weeks with limited tradable range from 118.40 to 120.50 but, this is normal when we are getting closer to important data release. Although, the same inner voice I’ve talked about in this post is still telling me that uptrend will resume soon but, I am still not convinced that this soon is not that close, it is not a near future. My technical overview is highlighting two strong resistance levels: 121.60 or 122.02. The support for USD/JPY can be found above these levels: 116.60 and 117.50. I am expecting short term downtrend by the end of this week, this depends on how the market will react with the NFP data.

Next Friday, Non-farm payroll data will be essential element for the US dollar watchers. I am expecting supportive data above 200K which might raise the expectations about raising the interest rate in June. I am not expecting any real surprises from Yellen’s speech or ADP Nonfarm employment data today.

The USD/JPY has the following major resistance and support levels:

  • RESISTANCE: 124
  • SUPPORT: 117.50

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (50 pips stop loss applied):

  • Sell: at 121.40 – Take profit 120.40 (100 pips profits)
  • Buy: at 117.60 – Take Profit 118.60 (100 pips profits)
  • Buy: at 119.50 – Take Profit 120.10 (60 pips profits)

This review is valid during trading week: 5th-8th April, 2015