USDJPY IN FOR BETTER BULLISH TURN THIS WEEK

FUNDAMENTAL BEAM

USD/JPY finished the week strongly, as the pair gained slightly over one cent on the week. USD/JPY closed the week at 98.20. This week’s highlights are the Tankan indexes and the BOJ Monetary Policy Statement. Here’s an outlook for the Japanese events and an updated technical analysis for USD/JPY.
Japanese inflation indicators met their estimates last week. In the US, Unemployment Claims were down slightly, but key manufacturing and housing data posted declines.
Updates:

• USD/JPY falls on US government shutdown fears: The yen is certainly enjoying its safe haven status. As negotiations in the US concerning a government shutdown got stuck...
• The Sword of Damocles may fall on the US unless a deal on a budget is reached today: Idea of the Day This could be a tricky end of the month. On top of the usual month end...
• Investor confidence shaken by political tensions on both sides of the Atlantic and a default threat in the US: A number of political developments over the weekend have shaken investor confidence worldwide, sending global equities sliding as we head...
• US government closed for business – 4 implications – USD crashing: This time, politicians didn’t reach a last minute deal. When the clock struck midnight, the Republican controlled House and the...
• US Government shuts down for the first time in 17 years as budget talks remain at a standstill: The overnight session was once again filled with action, as politicians in Washington refused to budge from party lines and...
• USD/JPY: Trading the ISM Non-Manufacturing PMI: The ISM Non-Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the services sector. Respondents are surveyed...
• ADP Non-Farm Payrolls disappoint with +166K – dollar drops: ADP reported a slightly disappointing report: a gain of 166K jobs in September. It was expected to report a gain...
• How would a US debt default impact USD?: The political impasse in Washington and wrangles over the US debt ceiling, which is leading to a gradual shut down...
• US jobless claims remain low at 308K: US jobless claims were expected to rise to 315K, up from 307K last week (revised up from 305K initially reported)....
• Forex Analysis: USD/JPY Drifts Further Down to Key Support: October 3, 2013 – USD/JPY (daily chart) has continued its gradual drift to the downside within a sideways trading range.

TECHNICAL BEAM

As predicted last week, we expect a completion of the wave B leg for USDJPY following the Greenback strongly endorsement for a bullish setup.

Price target for each leg is as shown in the chart above.

NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.

HAPPY TRADING