Weekly Technical Outlook: USD/JPY; Market Forecasts for February 20th – February 24th

• Resistance level 114.896
• Pivot Level 112.596
• Support Level 111.734, 109.905, and 108.538

Technical Analysis

Daily bias in USD/JPY remains bearish with 114.896 resistances intact and deeper decline is still expected for the pair as long as resistances holds the area.

The price action stays below resistances so far at end of the week and such decline is viewed as a correction.

Thus, we’d expect resistance to hold the area and the pair remains bearish with a break at 112.596 levels indicating a near term bearish reversal.

The outlook continues with the downside bias and the price action shows a bearish movement rejection at resistance area closed below trend line.

With the stochastic oscillator currently at 59.0 levels, the pair closed below the rejection of trend line indicating a trend reversal shifting the momentum.

Current development suggests that the medium term downside is expected to be further low and the focus shall be at 111.734. A break here should make lower lows at 109.905 / 105.538 levels. The outlook remains bearish for the week.

Economic

• Market Manufacturing PMI, FOMC Member Harker Speech
• Existing Home Sales, FOMC Minutes, Continuing Jobless Claims
• Initial Jobless Claims/Michigan Consumer Sentiment Index, New Home Sales
• Adjusted Merchandise Trade Balance, All Industry Activity Index
• Foreign investment in Japan stocks, Leading Economic Index
• Foreign bond investment, Coincident Index

Area of Interest

• Strong resistance at 114.896 area and closed below resistance levels.
• Bearish momentum reversal strongly closing below the trend line.
• Price action closed below trend line and oscillator below 59.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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