27.12.2016

USD/JPY

Technical Analysis

The USD/JPY moving down slowly in recent weeks after rejection at the level of 118.636. Price recently nearing the 55EMA and we may see further ranging movement until end of the year. Nearest support we may seen at the strong level of 114.729 when resistant become support. At this moment, no clear indication of the price movement as we should wait for the price to reach any key level and seek confirmation from candlestick/chart pattern before taking any action.

Fundamental Analysis

The Japanese Yen heads into the end of 2016 near multi-year highs vs the US Dollar, and economy developments suggest the JPY may finally break the 100 level before the year is through. Continued inaction from both the bank of Japan and US Federal Reserve represent the bigger risk to USD/JPY exchange rate. Other key risk are the rise of trade protectionism and financial market volatility. And indeed, the status quo suggest the USD/JPY will likely fall further until we see major changes.

Source

Metatrader 4

DailyFX