USDJPY halted its rise, pausing ahead of a new wave of growth

The USDJPY pair is consolidating around 151.60. The prerequisites for further growth remain in place. Discover more in our analysis for 11 December 2024.

USDJPY forecast: key trading points

Fundamental analysis

The USDJPY rate rose to 151.60 and then paused to consolidate.

The Japanese yen remains near a two-week low against the US dollar, as expectations surrounding the release of the US inflation report are supporting the USD.

Japan’s Tankan Index data was negative in December, while the BSI in the manufacturing sector improved in Q4 2024. Producer price statistics were also released, showing Japan’s fastest growth in 16 months. The focus of yen supporters has shifted to the December Bank of Japan meeting. While the market anticipates an interest rate hike, doubts about it remain significant.

The USDJPY forecast does not rule out further price increases.

USDJPY technical analysis

The USDJPY H4 chart indicates that the market has completed a growth wave, reaching the local target of 152.17. Today, 11 December 2024, a downward impulse towards 150.77 is forming. After reaching this level, the price could rise to 152.70. Subsequently, a downward wave might develop, targeting 150.30.

The Elliott Wave structure and growth wave matrix, with a pivot point at 150.77, technically support this scenario for the USDJPY rate. The market is forming a consolidation range around this level. The price is expected to continue its upward momentum towards the upper boundary of the price envelope at 152.70 before declining to its central line at 150.30. With a breakout below this level, the trend could continue towards the envelope’s lower boundary at 148.25.

Summary

The USDJPY pair remains at two-week highs. Technical indicators for today’s USDJPY forecast suggest a potential decline to the 150.77 level.