Fundamental Analysis of USD/JPY for October 30, 2017

USD/JPY is currently residing below the resistance area of 114.30-50 which is expected to push the price lower towards 112.00-50 support area in the coming days. USD has been quite positive with the economic reports recently which pushed the price higher towards the resistance area of 114.30-50 before the price showed bearish intervention. This week is going to be very volatile for the USDJPY pair as FOMC Meeting, Federal Funds Rate, Non-Farm Payroll, Average Cash Earnings, and Unemployment Rate report is going to be published, which on average is expected to be quite positive in nature and on the JPY side, Monetary Policy Statement and BOJ Policy will be published which is expected to be unchanged at -0.10%. Today, JPY Retail Sales report was published which was published at 2.2% from the previous value of 1.8% which did not quite meet the expectation of 2.3%. The positive economic report did help the currency to sustain the gain over USD today which is expected to push price lower in the coming days. On the other side, today USD Core PCE Price Index is going to be published which is expected to be unchanged at 0.1%, Personal Spending report is expected to show a growth to 0.8% from the previous value of 0.1% and Personal Income report is also expected to increase to 0.4% from the previous value of 0.2%. As of the current situation, USD is expected to show some positive economic results in the coming days which is expected to add to the USD gain but JPY is equally quite stronger in comparison as well. A good amount of volatility is expected to hit the market this week and provide a directional indication for future by the end of the week.

Now let us look at the technical view, the price has been quite corrective recently rejecting off the resistance area of 114.30-50 for several times. The price is currently residing just below the resistance area of 114.30-50 where Bearish Regular Divergence can also be observed as well. As of the current scenario, the price is expected to push lower towards the support area of 112.00-50 before showing any upcoming bullish move in the pair. As the price remains below 114.30-50 resistance area the bearish bias is expected to continue further.

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