USDJPY Poised For Break Higher Above 125.20 Post JPN DCGPI
Aayush Jindal
Key Highlights
US Dollar continued to rocket higher against the Japanese Yen, as the USDJPY pair traded to a new weekly high above 125.20.
Japanese Domestic Corporate Goods Price Index released by the Bank of Japan registered a decline of 0.2% in July 2015 whereas the market was expecting -0.1%.
In terms of the yearly change, the Japanese Domestic Corporate Goods Price Index declined 3%.
USDJPY has formed a breakout structure calling for more gains in the near term.
Japanese Domestic Corporate Goods Price IndexEarlier during the Asian session, the Japanese Domestic Corporate Goods Price Index, which is a measure of prices for goods purchased by domestic corporates in Japan was released by the Bank of Japan. The forecast was lined up for a decrease of 2.9% in July 2015, compared to the same month a year ago. However, the outcome was lower compared with the expectation, as the Japanese Domestic Corporate Goods Price Index declined by 3%.In terms of the monthly change, the forecast was of a 0.1% decrease. However, the outcome failed to match the expectation, as there was a decline of 0.2% in July 2015, compared with the preceding month.The report mentioned that the “Producer Price Index fell 0.2 percent from the previous month. The index excluding extra charges for summer electricity fell 0.4 percent from the previous month”.USDJPY Technical AnalysisThe US dollar continued to follow a nice bullish trend against the Japanese Yen, as there was a nice uptrend witnessed. The USDJPY pair traded higher and even managed to clear the 125.00 resistance area. There is an ascending channel pattern formed on the hourly chart, which is acting as a catalyst for a move higher. There is a chance of the pair breaking higher in the near term, as the hourly RSI is well positioned above the 50 level.On the downside, an initial support can be seen around the 23.6% fib retracement level of the last wave from the 124.71 low to 125.23 high. Any further losses might call for a test of the channel support area.Overall, there are many signs for a move higher in USDJPY, compared with losses in the short term.
On the downside, an initial support can be seen around the 23.6% fib retracement level of the last wave from the 124.71 low to 125.23 high. Any further losses might call for a test of the channel support area.Overall, there are many signs for a move higher in USDJPY, compared with losses in the short term.
On the downside, an initial support can be seen around the 23.6% fib retracement level of the last wave from the 124.71 low to 125.23 high. Any further losses might call for a test of the channel support area.Overall, there are many signs for a move higher in USDJPY, compared with losses in the short term.