USD/JPY: outlook for May 29 - June 2

USD/JPY: outlook for May 29 - June 2

USD/JPY has posted slight gains in the first half of past week as political tumult over Trump's obstruction of justice subsided. The yen regained its momentum following the release of the FOMC meeting minutes that conveyed a less hawkish tone than traders had expected. Fed’s policymakers demanded more evidence that the recent slowdown in the US economy was temporarily before raising interest rates. On Friday, the yen has strengthened following the release of solid inflation figures out of Japan. Japan’s core consumer prices rose for a fourth month in April which it the longest rally of gains since mid-2015.

Traders will continue searching for confirmation of the Fed’s June rate hike next week. First, they will pay attention to the US consumer confidence report, US Chicago PMI and pending home sales all coming in the first half of the week. The US unemployment claims, ADP report and manufacturing figures will be awaited on Thursday. Friday will be marked with the US labor market report. From Japan, we will get jobless rate, core inflation figures and retail sales on Monday, final manufacturing PMI on Thursday and consumer confidence report on Friday. Following the US Memorial Day scheduled for the 29th of May, the investigations into Russia’s meddling into the US election and any ties with Trump campaign will probably be renewed. This might increase the demand for safe-haven yen and hurt the yen.

The current technical outlook for the USD/JPY is still neutral. The weekly moves over the past few days have been quite muted.  In the short term, the prices will likely trade in the cloudy area of Ichimoku indicator on the daily chart. A break of the horizontal Senkou Span B located at 111.80 will open the way towards the resistance at 112.50.  A drop below the lower border of the 110 – 113.10 consolidation range might send quotes to test lower supports at 109.60, 108.70.

USDJPYDaily.png

Similar

Popular

EUR/USD: euro hung on Tenkan-Kijun

Narrowing bearish Ichimoku Cloud with rising Senkou Span A; a dead cross of Tenkan-sen and Kijun-sen, but rising Tenkan-sen; the bulls could breakout the Kijun’s resistance.

Deposit with your local payment systems

Callback

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