Forex Market: USD/JPY daily trading forecast

Friday’s trade saw USD/JPY within the range of 120.01-120.46. The pair closed at 120.37, gaining 0.30% on a daily basis.

At 9:03 GMT today USD/JPY was up 0.08% for the day to trade at 120.44. The pair touched a daily high at 120.60.

Fundamentals

Japan

The yen managed to regain certain ground against the US dollar earlier on Monday, after the Japanese Ministry of Health announced, that a person in Tokyo is being tested for the Ebola virus, after reporting a fever of over 38 degrees. The man had returned from Sierra Leone in December, where he attended a burial and had contact with a body bag, according to the Ministry.

“With Japanese traders already in year-end mode and European players returning later today, I do not see the dollar-yen falling much further from here,” said Kumiko Ishikawa, a currency analyst at Gaitame.com Research Institute Ltd. in Tokyo, cited by Bloomberg.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 120.28. In case USD/JPY manages to breach the first resistance level at 120.55, it will probably continue up to test 120.73. In case the second key resistance is broken, the pair will probably attempt to advance to 121.00.

If USD/JPY manages to breach the first key support at 120.10, it will probably continue to slide and test 119.83. With this second key support broken, the movement to the downside will probably continue to 119.65.

The mid-Pivot levels for today are as follows: M1 – 119.74, M2 – 119.97, M3 – 120.19, M4 – 120.42, M5 – 120.64, M6 – 120.87.

In weekly terms, the central pivot point is at 120.17. The three key resistance levels are as follows: R1 – 121.03, R2 – 121.69, R3 – 122.55. The three key support levels are: S1 – 119.51, S2 – 118.65, S3 – 117.99.