USDJPY: Bearish Eyes Further Weakness…
As long as 108.62 – broken support turned resistance – holds on a daily closing basis. The USDJPY remains on the downside to 108.25 levels. A halt is likely, it may test 108.62 before attempts to break lower. However; below 108.25 aims the 107.95 level, further down, support comes in the 107.60 level.
On the upside, resistance comes at 108.62 levels. Above that level sees recovery threats to 108.95/109.26 levels. Sustained trading above 109.25 will extend the corrective recovery to 109.85 levels.
In conclusion: The USDJPY continues to face downside threats below the 109.25 level.
Support: 108.25, 107.95, 107.60, 107.20, 106.90, 106.55
Resistance: 108.62, 108.95, 109.25, 109.85, 110.30, 110.75
Key data/events which may affect USDJPY during this week:
- U.S ISM Manufacturing PMI (Jan) on Monday at 15:00 GMT. The forecast is to rise by 48.5, from 47.2 in the preceding month.
- Japan Services PMI (Jan) on Wednesday at 00:30 GMT. The forecast is to rise by 52.1, from 49.4 in the last month.
- U.S ISM Non-Manufacturing PMI (Jan) on Wednesday at 15:00 GMT. The forecast is to rise by 55.1, from 55.00 a month earlier.
- BoJ Board Member Masai Speaks on Thursday at 01:30 GMT.
- U.S Nonfarm Payrolls (Jan) on Friday at 13:30 GMT. The forecast is to rise by 161K, from 145K a month earlier.
- U.S Unemployment Rate (Jan) on Friday at 13:30 GMT. The forecast is to remain unchanged as the previous month at 3.5%
