USDJPY WEEKLY OUTLOOK COME DEC 2ND-DEC 6TH; NOW TARGETING RNDOM 50% FIBONACCI SEQUENCE

FUNDAMENTAL BEAM

USD/JPY continues to rally, as the pair gained over a cent last week. The pair closed the week at 102.42. The upcoming week has seven events. Here is an outlook on the major market-movers and an updated technical analysis for USD/JPY.

US employment numbers were strong last week, helping boost the US  dollar. Japanese inflation indicators looked good, but manufacturing production was well below the estimate.

Summary of key events during the week

1. Capital Spending: Sunday, 23:50. Capital Spending measures the total value of new business capital expenditures. It is released on a quarterly basis, magnifying its impact. After two straight declines, the indicator posted a flat reading of 0.0% in Q2. The upward trend is expected to continue in Q3, with an estimate of a strong gain of 3.1%.
2. BOJ Governor Haruhiko Kuroda Speaks: Monday, 2:30. Kuroda will deliver remarks in Nagoya. Analysts will be listening closely, looking for hints as to changes  in the BOJ’s monetary policy.
3. Monetary Base: Monday, 23:50. The Bank of Japan  continues to increase its monetary base through the purchase of long-term bonds. The indicator posted a gain of 45.8% in October and a gain of 47.2% is expected for the November release.
4. Average Cash Earnings: Tuesday, 1:30. This is an important economic indicator, since an increase in employment income should lead to stronger consumer spending and economic growth. The indicator posted a weak gain of 0.1% in October, but this was well above the estimate of -0.5%. The markets will be looking for a stronger gain for the November release.
5. 10-year Bond Auction: Thursday, 3:45. The average yield on 10-year bonds continues to decrease, with the October yield coming in at 0.61%. As a minor event, this release is unlikely to have a major impact on the movement of USD/JPY.
6. Leading Indicators: Friday, 5:00. This composite index is based on 11 economic indicators, but is a minor event since most of the data has been released previously. The index rose to 109.5% last month, and little change is expected in the upcoming release.
7. BOJ Governor Haruhiko Kuroda Speaks: Saturday, 2:00. Kuroda will deliver remarks in Tokyo. A speech which is considered more hawkish than expected is bullish for the Japanese yen.

TECHNICAL BEAM

 

USD/JPY adamantly refused to risk any bear Fibonacci pattern. This is coming after the pair confirmed the formation of a triangular wave C leg exactly on the 13th of September, 2012. From then up until this very moment, the pair has continued bullish with an average profit target of over +2000pips.

 Last week, we envisaged an impending bearish wave i leg which was expected to serve as a bullish propeller. This prediction has been fulfilled and we even expect this bullish pattern to
continue, looking ahead in profit for 103.716.
The random 50% Fibonacci sequence number rest on 105.391 while the 61.8% Fibonacci sequence also stands at 112.399.

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.

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