USD/JPY – Can US Dollar Recover Above 113.00 Vs Japanese Yen?
Aayush Jindal
Key Highlights
The US Dollar after a bearish wave found support near 111.50 against the Japanese Yen.
The USD/JPY recently broke a bearish trend line at 112.00 on the 4-hours chart.
Recently in the US, the Initial Jobless Claims for the week ending July 15, 2017 was published, which declined from 247K to 233K.
Today in Japan, the foreign bond investment (July 10, 2017 figure) was released, which posted ¥947.8Bs, up from the last revised ¥805.8B.
USDJPY Technical Analysis
The US Dollar started a major correction from the 114.50 swing high against the Japanese Yen. The USD/JPY has likely completed a correction near 111.50 and may resume its uptrend.The pair recently found strong bids near 111.50 and the 200 simple moving average (H4). The pair started a recovery, and broke a bearish trend line at 112.00 on the 4-hours chart.At the moment, the pair is trading below the 23.6% Fib retracement level of the last decline from 114.48 to 111.55. On the upside, the next major hurdle sits at 113.00, which is near the 100 simple moving average (H4).On the downside, the 100 simple moving average (H4) at 111.75 may continue to hold losses in the near term.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims for the week ending July 15, 2017 was released by the US Department of Labor. The market was positioned for a decline from the last reading of 247K to 245K.However, the result was positive, as there was a decline in claims from the last revised reading of 248K to 233K. As per the report:
The 4-week moving average was 243,750, a decrease of 2,250 from the previous week's revised average. The previous week's average was revised up by 250 from 245,750 to 246,000.
The USD/JPY pair remained supported above 111.70 after the release, and currently looking to gain bullish momentum.
Economic Releases to Watch Today
UK’s Public Sector Net Borrowing June 2017 – Forecast £4.300B, versus £5.993B previous.
Canadian Retail Sales May 2017 (MoM) – Forecast 0.2%, versus +0.8% previous.
Canadian Retail Sales ex Autos May 2017 (MoM) – Forecast 0%, versus +1.5% previous.
Canadian Consumer Price Index June 2017 (MoM) – Forecast -0.1%, versus +0.1% previous.
Canadian Consumer Price Index June 2017 (YoY) – Forecast +1.0%, versus +1.3% previous.
The pair recently found strong bids near 111.50 and the 200 simple moving average (H4). The pair started a recovery, and broke a bearish trend line at 112.00 on the 4-hours chart.At the moment, the pair is trading below the 23.6% Fib retracement level of the last decline from 114.48 to 111.55. On the upside, the next major hurdle sits at 113.00, which is near the 100 simple moving average (H4).On the downside, the 100 simple moving average (H4) at 111.75 may continue to hold losses in the near term.
However, the result was positive, as there was a decline in claims from the last revised reading of 248K to 233K. As per the report: