Community Forecasts for March 14 - 18: USD/JPY 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Until the level of 112 is not breached, the outlook for USD/JPY is bullish. Almost in the middle of the week, the pair demonstrated some decline, as the market sentiment was influenced by a set of new data from China, namely the sluggish trade balance since the surplus dropped to the eleven-month low amid falling exports and imports. Moreover, the economic data calendar remained silent in the US, but from the Japanese side, the final reading of GDP for Q4 2015. The Economic and Social Research Institute Japan showed that the economy slowed by 1.1% on the annual basis, following a modest 1.0% pickup booked a quarter ago. The GDP in turn, slowed 0.3% quarter-to-quarter according to the release. Meanwhile, Thursday's action by the European Central Bank (ECB), which saw interest rates cut and the quantitative easing programme expanded, caused stocks to initially rise. Therefore, the result of ECB press conference, caused a run to safety and pushed the euro and the yen higher while stocks lower. 
Dukascopy Community members are suggesting the pair will highly appreciate during this week. The price will most likely hit 114.1 by this Friday, as 80% of members are having bullish outlook. Despite bullish outlook, this price is slightly below last week's average price of 115. The bullish outlook is supported by some traders' opinions as Jignesh suggests "The USD/JPY has been narrowing in a tight price range, typical before a big price move.  A down trend line is providing resistance in the 114.50-115.00 area.  Though there is little certainty where the pair will go at this time from a technical perspective. The correlations with the equity markets hint that we may see an upside break."

© Dukascopy Bank SA

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