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USDJPY Pennant Breakout Long Term Forecast

USDJPY Pennant Breakout Long Term Forecast

Last week we have published our longterm USDJPY forecast. We have mentioned that the Bullish market is likely to continue. BoJ announcement was the key and yesterday we had ” the day”.

Fundamentals:

The JPY began to lose weight against all major currencies as the BOJ announced at the morning meeting that interest rates should be kept constant while lowering the long term inflation outlook and made its monetary policy more sustainable for a long time.

At the first look, it may sound like a hawkish statement, however, as a result, the BOJ has enabled itself to prolonged monetary easing, meaning the bond yield differential will likely continue widening in the Dollar – positive manner.

In addition, in the evening, US President Donald Trump said that he would start negotiations with China on trade wars. This gives the feeling of  “JPY is not a safe haven anymore”.

Technically:

On the bigger picture, Monthly Chart, USDJPY made the bullish pennant breakout. It’s the bullish continuation pattern. The targets of the formation are 118.500 and 125.800.

On the daily chart, it seems the correction of Cup / Handle formation is completed. On the H4 Charts, Anka took the support of major EMAs.

Long Term Key Levels.

  1. Weekly closing above 111.400 will be the confirmation of the bullish run.
  2. 110.400 is the key support level.
  3. Midterm targets: 112.500 113.200 114.700 117.000
  4. Long Term Targets: 118.500 120.000 125.800 ( Targets are valid if the pair makes weekly closing above 111.400 )

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DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money

 

USDJPY Forecast:  Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility

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