USD/JPY: outlook for April 3-7

USD/JPY: outlook for April 3-7

2019-11-11 • Updated

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

Will USDJPY slide lower in 2023?
Will USDJPY slide lower in 2023?

Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?

BoC Rates Could Alter The Trend on USDCAD and others
BoC Rates Could Alter The Trend on USDCAD and others

Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

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