Technical Outlook: USDJPY rallied to a 4-month high on the back of the US elections but the strong momentum led gains could be at risk of a correction. Following the break of resistance at 104.27, price has yet to establish this level for support. On Friday, USDJPY closed out with a hammer pattern which comes after five straight days of gains. As long as the dollar does not post new highs, look for a break down below Friday’s low of 106.03 for a dip to 104.27, where the bullish momentum could be renewed.
Fundamental Outlook: A relatively quiet week from Japan will see Sunday’s release of GDP numbers for the third quarter. Expectations call for a 0.2% increase in quarterly GDP, which is the same pace as Q2 while the preliminary GDP price index is expected to rise only 0.3%, slower than 0.7% increase seen previously. The week ahead is quiet thereafter with US economic data and the general market sentiment likely to drive prices.
USDJPY Weekly Forex Forecast – 14th to 18th Nov 2016 – BULLISH
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