USD/JPY

Prediction: Decrease

Fundamental Analysis:

The Japanese Yen weakened after the Manufacturing PMI release on Friday. The Jibun Bank Japan Manufacturing PMI fell to 49.2 in October, down from 49.7 in September. Meanwhile, U.S. Nonfarm Payrolls are expected to show an increase of 113,000 jobs in October, a drop from 254,000 previously.

The Yen retraced some recent gains after the PMI announcement, but the USD/JPY pair declined as the Yen strengthened following comments from Bank of Japan Governor Kazuo Ueda, which raised expectations for a rate hike in December.

Japan's Chief Cabinet Secretary Yoshimasa Hayashi mentioned that the Bank of Japan will work closely with the government to ensure effective monetary policy.

Technical Analysis:

The USD/JPY pair is trading around 152.40 on Friday. Daily chart analysis shows a possible weakening of the bullish trend, as the pair has fallen below its ascending channel. However, the 14-day Relative Strength Index is still above 50, indicating that bullish momentum remains.

Resistance is found at the lower boundary of the ascending channel at 152.50. If the pair can move back inside this channel, it might aim for the upper boundary near 158.30.

On the downside, support is likely at the 14-day Exponential Moving Average around 151.50, with additional support at the psychological level of 150.00.

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