Forex Outlook: USD/JPY, EUR/USD

USD/JPY eyes 145.00 amid US durable goods news

(Usman Ahmed – Forex92)

The U.S. Dollar (USD) inched higher against the Japanese Yen (JPY) on Monday (Sep 26, 2022), increasing the price of the USDJPY to more than 144.00 ahead of the release of U.S. Durable Goods Orders news. The technical bias remains bullish since the USDJPY printed a higher low in the recent downside move.

Technical analysis

As of this writing, the USDJPY pair strengthens around 144.13. If the price continues increasing, the pair might face some resistance near the listed price levels.

Short-term resistance

144.69 – the high of September 21, 2022.

145.00 – the psychological level.

145.89- the major horizontal resistance.

On the downside, the pair might find some sustainability near the listed support levels.

Short-term support

142.83 – the low of Sep 16, 2022.

142.00 – the psychological number.

141.24 – the 23.6% fib level support.

US durable goods order news

The U.S. Census Bureau is scheduled to release numbers for the US Durable Goods Orders tomorrow (Sep 27, 2022). According to economists, the US Durable Good Order news registered a reading of -1.1% in August, as compared to the reading of -0.1% in the month before.

The Durable Goods Orders news tracks the value of orders placed with manufacturers for long-lasting products like cars and refrigerators. These durable items are susceptible to the U.S. economy because they necessitate substantial investments.

Generally speaking, a high reading strengthens the U.S. Dollar and suggests a bullish trend for the USD/JPY and vice versa.

Conclusion

Considering the price movement of the USDJPY pair over the past few days, it may be a better option in the short term if the pair was bought at around 142.83. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.

EUR/USD outlook: Euro may fall further after consolidation

(Slobodan Drvenica – Windsor Brokers)

The Euro bounces from new 20-year low (0.9548) hit overnight, in extension of Friday’s almost 1.5% drop. Bears faced a headwinds after break of initial target at 0.9601 (Sep 2002 low), with profit-taking on oversold conditions, seen rather as a positioning for fresh push lower, as technical picture is bearish and worsening fundamentals add to negative outlook.

Traders got stuck after reversing from short to long positions on ECB’s 0.75% rate, as Fed hiked for the third consecutive time by 75 basis points and signaled it will remain on aggressive track that continued to inflate dollar.

In addition, downbeat German Ifo data confirm that the Eurozone economy remains fragile, while single currency could be also. dragged by weakening pound on UK fiscal drama.

Recovery was so far capped by Fibo 23.6% of 1.0197/0.9548 bear-leg (0.9701), with firm break here needed to ease downside pressure and allow for extension towards key barrier at 0.9796 (Fibo 38.2% / falling daily Tenkan-sen).

Otherwise, bears will remain fully in play while the action stays below 0.9701 and risk retest of 0.9547 low, loss of which would open way for test of psychological 0.90 support.

Res: 0.9701; 0.9740; 0.9796; .9812.
Sup: 0.9620; 0.9601; 0.9548; 0.9500.