USD/JPY: outlook for May 23 - 26

USD/JPY: outlook for May 23 - 26

2019-11-11 • Updated

USD/JPY fell to 110.20 in the course of the past week. The pair was hit by continuing troubles of Trump administration. Nervous investors switched to the safe-haven yen after media reported that Trump obstructed justice by pressuring former FBI director James Comey to end investigation into ties between Russia and the former US security advisor Michael Flynn. Lawyers regarded Trump’s actions as an impeachable offense. On the economic data front, Japanese Preliminary GDP improved to 0.5% vs forecasted 0.4%. US jobless claims and the Philly Fed Manufacturing index surpassed market expectations and helped USD recover its losses, but only partially. It’s clear that political factor will keep affecting the pair.

Let’s have a look at the upcoming events. We will receive Japan’s trade balance data on Monday. Flash Manufacturing PMI and CPI figures will be released on Wednesday and Friday respectively. US statistical entities will release housing market data, manufacturing figures, core durable goods orders and, most importantly, preliminary GDP. If Trump’s aides fail to improve the situation, the US dollar will remain under pressure next week and lose even more ground.

USD/JPY reversed to the downside from 100-week MA just above 113.00. This line will now act as resistance together with 100-day MA at 112.75. Support lies at the psychologically important level of 110 ahead of 108.60 (50-week MA). The pair may consolidate between 112.50 and 108.50 in the coming weeks. Increase in the market’s risk aversion can make the greenback test lower border of this range.

USDJPYDaily.png

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

Latest news

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

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.

Callback

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!

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