USD/JPY – US Dollar Approaching Crucial Break Vs Japanese Yen
Aayush Jindal
Key Highlights
The US Dollar remains in a downtrend against the Japanese Yen as long as below 111.40.
There is a major bearish trend line with resistance at 111.40-50 formed on the 4-hours chart of USD/JPY.
In Japan today, the Nikkei Manufacturing PMI for May 2017 posted a rise from 52 to 53.1.
In the US today, the ADP Employment Change will be released by the Automatic Data Processing, Inc. with forecast as 185K, up from the last 177K.
USD/JPY Technical Analysis
The US Dollar struggled lately against the Japanese Yen and moved below 111.50. The USD/JPY pair now faces a major challenge on the upside at 111.40 for a push towards 113.00.After a sharp decline towards 110.00, the pair found support and started consolidating. The pair started a recovery and moved towards 112.12 where it faced offers, and traded lower.At the moment, the pair is again struggling below 111.50. There is a major bearish trend line with resistance at 111.40-50 formed on the 4-hours chart.The 100 simple moving average on the same chart is at 111.42, suggesting the importance of the 111.40-50 resistance. As long as there is no break and close above 111.50, USD/JPY remains at risk.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for May 2017 was released. The market was poised for a decline from 52 to 51.8The actual result was better, as the Nikkei Manufacturing PMI posted a rise from 52 to 53.1. The report added that “May survey data signalled a further strong improvement in overall operating conditions faced by Taiwanese manufacturers. This was despite the pace of improvement weakening to a seven-month low, which was partly due to softer production growth“.The Japanese Yen was not impressed much, and was seen trading a few pips lower, as USD/JPY moved towards 111.00.
Economic Releases to Watch Today
Swiss Gross Domestic Product for Q1 2017 (QoQ) – Forecast +0.4%, versus 0.1% previous.
Germany’s Manufacturing PMI for May 2017 - Forecast 59.4, versus 59.4 previous.
Euro Zone Manufacturing PMI May 2017 – Forecast 57, versus 57 previous.
France Manufacturing PMI May 2017 – Forecast 54, versus 54 previous.
Spain’s Manufacturing PMI May 2017 – Forecast 54.7, versus 54.5 previous.
US ISM Manufacturing PMI for May 2017 – Forecast 54.5, versus 54.8 previous.
US ADP Employment Change May 2017 - Forecast 185K, versus 177K previous.
US Initial Jobless Claims - Forecast 239K, versus 244K previous.
After a sharp decline towards 110.00, the pair found support and started consolidating. The pair started a recovery and moved towards 112.12 where it faced offers, and traded lower.At the moment, the pair is again struggling below 111.50. There is a major bearish trend line with resistance at 111.40-50 formed on the 4-hours chart.The 100 simple moving average on the same chart is at 111.42, suggesting the importance of the 111.40-50 resistance. As long as there is no break and close above 111.50, USD/JPY remains at risk.
The actual result was better, as the Nikkei Manufacturing PMI posted a rise from 52 to 53.1. The report added that “May survey data signalled a further strong improvement in overall operating conditions faced by Taiwanese manufacturers. This was despite the pace of improvement weakening to a seven-month low, which was partly due to softer production growth“.The Japanese Yen was not impressed much, and was seen trading a few pips lower, as USD/JPY moved towards 111.00.