USDJPY Weekly Forex Forecast – 5th to 9th Dec 2016

Previous USDJPY Weekly Forex Forecast

Technical Outlook: USDJPY moved to the resistance level of 114.00 – 114.50 by Thursday and closed bearish for the two days. Support is now seen at 111.27 and further declines could push the dollar lower. A break out below 111.27 will see USDJPY extend its declines down to 106.90 – 106.50. The upside remains unlikely for the moment, but if USDJPY gaps higher, then watch for support to be formed at 114.50 – 114.00 before trading long positions. To the downside, if 106.90 – 106.50 support breaks, then USDJPY will extend down to the support at 104.00. USDJPY remains in an uptrend therefore any declines will likely produce good buying opportunities.

Fundamental Outlook: It is a relatively quiet week from Japan with the final GDP figures being the only key data of importance. The third quarter GDP is widely tipped to have increased to 0.6%, up from the initial estimates of 0.5%, which could see the yen weaken further. However, with the Italian referendum and the Austrian elections, investors are likely to bid up the yen on an uncertain outcome from this week’s events that could see the USDJPY potentially make the much needed pullback in the rally.

USDJPY Weekly Forex Forecast – 5th to 9th Dec 2016 – BEARISH