The US Dollar gained traction this week and moved above 110.80 against the Japanese Yen.
The USDJPY pair broke a key bearish trend line at 110.40 on the 4-hours chart to open the doors for more upsides.
Today in Japan, the National Consumer Price Index for March 2017 (YoY) released by the Statistics Bureau posted an increase of 0.2%.
On the other hand, the Tokyo Consumer Price Index for April 2017 (YoY) posted a decline of 0.1%.
USDJPY Technical Analysis
The US Dollar opened this week with a gap up to 110.40 against the Japanese Yen. Later, the USDJPY pair gained traction, and traded further above 110.80.During the upside move, the pair broke a key bearish trend line at 110.40 on the 4-hours chart. Also, the pair settled above the 100 simple moving average (4H) at 110.00, signaling a positive trend.The pair recently traded as high as 111.78 from where a correction was initiated. It corrected towards the 38.2% Fib retracement level of the last wave from the 109.59 low to 111.78 high.So, there is a chance of USDJPY forming base once again for a move towards 111.78 or 112.00 in the near term.
Japanese National Consumer Price Index
Earlier during the Asian session, there were many releases in Japan like the National Consumer Price Index for March 2017 by the Statistics Bureau. The market was aligned for the CPI to increase by roughly 0.2% in March 2017, compared with the same month a year ago.The result was in line with the forecast with an increase of 0.2%. Looking at the Tokyo Consumer Price Index, the market was expecting a decline of 0.3% in in April 2017, compared with the same month a year ago. The actual was better, as there was a decline of 0.1%.The Japanese Unemployment Rate for March 2017 came from the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau. The forecast was an increase from 2.8% to 2.9%. However, the actual rate 2.8%. There is a minor pullback in the Japanese Yen, but the USDJPY pair remains supported on the downside near 111.00.
Economic Releases to Watch Today
German Import Price Index for March 2017 (YoY) – Forecast +6.5%, versus +7.4% previous.
UK GDP for Q1 2017 (Preliminary) - Forecast +0.4% (QoQ) versus +0.7% previous.
Euro Zone CPI for April 2017 (Preliminary) - Forecast +1.8% (YoY) versus +1.5% previous.
Euro Zone Core CPI for April 2017 (Preliminary) - Forecast +1% (YoY) versus +0.7% previous.
US Gross Domestic Product Q1 2017 (Preliminary) – Forecast 1.3% versus previous 2.1%.
Canadian Gross Domestic Product Feb 2017 (MoM) – Forecast 0.1%, versus 0.6% previous.
During the upside move, the pair broke a key bearish trend line at 110.40 on the 4-hours chart. Also, the pair settled above the 100 simple moving average (4H) at 110.00, signaling a positive trend.The pair recently traded as high as 111.78 from where a correction was initiated. It corrected towards the 38.2% Fib retracement level of the last wave from the 109.59 low to 111.78 high.So, there is a chance of USDJPY forming base once again for a move towards 111.78 or 112.00 in the near term.