USD/JPY: outlook for April 3-7

USD/JPY: outlook for April 3-7

USD/JPY tested 110.00 on the downside and then surged to 112.20 in the course of the past week as initial concerns about Donald Trump’s ability to implement his pro-growth policies have dissipated. Japanese economic data was a mixed bag. Household spending and CPI fell short of market’s expectations. At the same time, a jump in industrial production and lower unemployment rate indicate that Japan’s economic recovery is more or less solid. All these gains, however, are not convincing enough for the Bank of Japan to start the monetary policy tightening cycle. BoJ’s Governor Haruhiko Kuroda warned that he would need a more convincing evidence of underlying inflation before raising the bank’s long-term interest rate target.

Next week, USD/JPY will be driven mainly by the US fundamentals. Japan’s economic calendar is light with Tankan manufacturing & services indexes coming on Monday. The Bank of Japan’s core CPI is due on Tuesday. Many economists expect higher oil prices and a weaker yen to push Japan’s core inflation figures to 1%. But for the present moment, there is little sign of inflation rate increases. So, Japan’s CPI might post disappointing headlines.  The main focus will on the US manufacturing and non-manufacturing PMIs, FOMC meeting minutes and Friday’s labor market reports – NFP, average hourly earnings and unemployment rate.

Technically, USD/JPY should remain under pressure of the daily Ichomoku Cloud and the dead cross of the 50- and 100-day Moving Averages. It means that the pair should meet significant resistance at 113.00, 113.80 and 115.00. On the downside, support lies at 110.00 (psychological level) ahead of 108.35 (200-day MA).



Latest news

GBP/USD: pound entered into channel Tenkan-Kijun

Bullish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen with horizontal lines; the market is under strong resistance and prices entered into the channel Tenkan-Kijun.


Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera