COZfx: USD/JPY weekly outlook

[kiriss5678]

COZforex: The dollar recovered from 5 weeks lows against the yen on Friday, as investors took profits following the yen’s recent gains, but sentiment on the greenback remained fragile as ongoing concerns over political deadlock in the US weighed.

USD/JPY ended Friday’s session at 97.46, up 0.21% for the day, after falling as low as 96.92 on Thursday. Still, for the week, the pair ended down 0.93%. COZforex senior currency strategist Ian • Quigley said, USD/JPY is predicted to find support at 96.82, and a drop through could take it to the next support line of 96.39. Meanwhile, the pair is predicted to find its first resistance at 97.79, and a rise through could take it to the next resistance line of 98.32.

The dollar looked likely to remain under pressure amid concerns that the first US government shutdown for 17 years would derail the fragile economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.

The shutdown meant that Friday’s scheduled release of the US nonfarm payrolls report for September was postponed and no new date was given for the release of the data.

The Bank of Japan announced no changes to monetary policy at the conclusion of its monthly meeting on Friday, in a widely expected decision. BoJ Governor Haruhiko Kuroda warned that the US budget deadlock and fears over the threat of a possible US default could destabilize financial markets.

Delays in US economic data releases look likely to fuel uncertainty over whether the Federal Reserve will hold off on any move to roll back its USD85 billion a month asset purchase program.

Elsewhere, the BoJ is slated to publish monetary policy meeting minutes.

(COZ forex UK)

[orni308]

the pair seem's to be ready to continue upward trend.........