Forex Market: USD/JPY daily forecast

During yesterday’s trading session USD/JPY traded within the range of 101.42-102.01 and closed at 101.92.

At 11:23 GMT today USD/JPY was gaining 0.01% for the day to trade at 101.87. The pair touched a daily high at 102.00 at 03:30 GMT.

Fundamental view

The cost of living in the US probably increased 1.4% in March compared to the same month a year ago, according to the median analyst’ estimate. The Consumer Price Index (CPI) measures the change in prices of a range of products in different categories of consumer spending, such as food, clothing, rent and medical care and etc. It excludes investment costs, such as purchases of stocks and bonds, real estate and business expenses. Life insurance is also excluded from the scheme, although health insurance, property tax and motor vehicles are present in the study. Purchases of homes, antiques and collectibles are also treated as investment costs and are therefore excluded from the study. In the compilation of the index, the urban area of the United States is divided into 38 geographic areas called index areas, all goods and services purchased by the population are divided into 211 categories. It is expressed as a percentage change from the corresponding month a year earlier.

The core CPI probably rose 1.6% in March from a year ago, according to the median forecast by experts. The core CPI, excludes prices for food and energy, because they are the two most volatile components in the CPI. For this reason, many analysts prefer to use core inflation for their objectives. Expressed as a percentage change from the corresponding month a year earlier.

The US Bureau of Labor Statistics is schedule to release its report at 12:30 GMT in Washington. Higher-than-expected readings will certainly heighten greenback’s demand.

Technical view

According to Binary Tribune’s daily analysis, in case USD/JPY manages to breach the first resistance level at 102.15, it will probably continue up to test 102.37. In case the second key resistance is broken, the pair will probably attempt to advance to 102.74.

If USD/JPY manages to breach the first key support at 101.56, it will probably continue to slide and test 101.19. With this second key support broken, the movement to the downside will probably continue to 100.97.