US dollar after spiking higher towards 114.40 against the Japanese yen moved down.
The pair is currently trading near a support trend line on the hourly chart, which holds the key for more gains in the short term.
In the US, the Import Price Index will be released by the US Department of Labor today, which is forecasted to decrease by 0.7% in Feb 2016.
In Japan, the Business Survey Index (BSI) Large Manufacturing released by the Ministry of Finance posted a reading of -7.9, compared with the forecast of 4.2.
USDJPY Technical Analysis
The US dollar rocketed higher yesterday after the ECB interest rate decision, but later found sellers and traded down against the Japanese Yen. There is a support trend line on the hourly chart, which helped the bulls to prevent losses.The USDJPY pair is currently moving higher once again, but facing a major hurdle near the 100 and 200 hourly simple moving average. Moreover, the 38.2% Fib retracement level of the last leg from the 114.43 high to the 112.59 low is also around the 100 MA.So, the pair is likely to find it tough to break the highlighted resistance area.
US Import Price Index
Today, in the US, the Import Price Index that informs the changes in the price of imported products will be released by the US Department of Labor. The forecast is slated for a decrease of 0.7% in Feb 2016. Moreover, the Export Price Index is forecasted to decrease by 0.4%. Let us see how the outcome shapes up and impacts the US Dollar moving ahead.
Japanese Business Survey Index (BSI) Large Manufacturing
In Japan, the Business Survey Index (BSI) Large Manufacturing that studies business authorities' assessments of and forecasts for the economy was released by the Ministry of Finance. The market was expecting an increase from the last reading of 3.8 to 4.2 in the first quarter of 2016. However, the outcome was disappointing, as there was a decline of -7.9, compared with the previous quarter.Overall, the 100 hourly simple moving average must be watched. A break above it or a failure to break it may call for the next move in the USDJPY pair in the near term.
The USDJPY pair is currently moving higher once again, but facing a major hurdle near the 100 and 200 hourly simple moving average. Moreover, the 38.2% Fib retracement level of the last leg from the 114.43 high to the 112.59 low is also around the 100 MA.So, the pair is likely to find it tough to break the highlighted resistance area.