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Both the Cable and the EUR/USD currency pairs are expected to inch lower this week, mostly due to the strength of the Greenback, provided by improved fundamentals. Therefore, USD/JPY will move to the north. Fundamentals from the world's third largest economy have been disappointing so far, as retail sales and unemployment rate surprised markets to the downside. Another fact worth mentioning is a descending triangle pattern on a weekly chart. Despite the fact both quality and magnitude are below the average, there are clear indications the pair will be highly volatile soon. Price is moving closer to the apex point, and keeping in mind breakout occurs mostly around 64% of the way to the apex point, any of the trend lines can be penetrated before November. Meanwhile, descending triangles are breaking to the upside in 73% of the time.
Dukascopy Community members are aiming at 102.07 for this Friday, a price which is considerably higher than the last week's average price of 101.55. The above mentioned target is just 5 pips above the weekly R2, a level, around which, the pair struggled in the recent months. With 70% of votes being bullish, traders see ‘buy' signals both from the fundamental and technical analysis. "USDJPY has drawn a Doji on the daily chart around the 101.80 resistance zone, however the pair has received strong bids from the yearly support area," said Jignesh, who is also betting on a stronger-than-expected employment figures from the United States. At the same time, Zbych stated that "after defending support near 101.20 there is a possibility to move into a box of 101.20-103.40."
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