USD/JPY is currently consolidating below 107.30-50 price area from where the price is expected to push lower. Ahead of USD high impact economic reports to be published today, the market is quite indecisive having positive JPY economic report today. JPY BOJ Core CPI report was published today with an increase to 0.8% from the previous value of 0.7% which was expected to decrease to 0.6%. The positive economic report of JPY lead to certain indecision in the market resulting in more correction below 107.30-50 area. This week there are several economic reports to be published on the JPY side, which is expected to have a good impact on the upcoming growth of the currency against USD. On the other hand, today USD Core Durable Goods Orders report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Durable Goods Orders report is expected to be negative at -2.4% from the previous positive value of 2.8%, Goods Trade Balance report is expected to be unchanged at -72.3B and CB Consumer Confidence is expected to have slight increase to 126.2 from the previous figure of 125.4. Moreover, today Fed Chair Powell is going to testify the upcoming monetary policies and interest rate hike in March 2018. As of the current scenario, the pair is expected to be quite volatile this week having a number of impactful economic reports on the USD side and JPY side as well. To sum up, USD is expected to gain momentum in the coming days ahead of the Rate Hike in the coming days whereas positive economic report results will provide a good push to the USD buyers in the future.
Now let us look at the technical view. The price is expected to proceed towards 107.30-50 price area before showing any bearish or bullish pressure in the coming days. A daily close above 107.50 is expected to lead to further bullish pressure with target towards 108.50. On the other hand, a bullish rejection off the 107.50 with a daily close is expected to push the price lower towards 105.50.
