USD/JPY Forecast: Holding Within Bearish Ground In The Short-Term
USD/JPY Current Price: 108.78
Japan’s Leading Index seen recovery modestly to 92.0 in October.
US Nonfarm Payroll report could put the market’s on pause through the Asian session.
USD/JPY holding within bearish ground in the short-term room to fall below 108.00.
The USD/JPY pair flirted with the 109.00 level at the beginning of the day, but gave up in US trading hours, ending the day in the red in the 108.70 price zone. The Japanese government officially announces its 26 trillion economic stimulus package this Thursday, although it didn’t surprise investors, who had largely anticipated the move. The pair eased amid fading mood throughout the day, as despite US data came in slightly better than anticipated, Wall Street spent the day trying to leave the red, without succeeding.
The upcoming Asian session will bring Japanese data related to household spending, and the preliminary estimate of the October Leading Economic Index, seen at 92 from 91.9 in September. The Coincident Index is expected at 101.4 from 101.1 previously. The market could remain side-lined ahead of the US Nonfarm Payroll report to be out this Friday.
USD/JPY Short-Term Technical Outlook
The USD/JPY pair has retreated from a congestion of moving averages, which favor a downward extension, as the 20 SMA is crossing below directionless larger ones. Technical indicators have spent the day seesawing in negative territory, the Momentum now marginally higher, although the RSI flat at around 41. The pair has an immediate resistance at 109.00, but it would need to rally beyond 109.30 to recover a bullish stance.
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