The US Dollar remained under pressure, and moved below 113.00 against the Japanese yen.
At the moment, the USDJPY is holding a trend line support at 112.00 on the 4-hours chart.
Today, the Japanese Industrial Production preliminary reading for March 2017 was released by the Ministry of Economy, Trade and Industry, which came in at -0.8%.
Later today, the US Gross Domestic Product figure for Q4 2016 (preliminary) will be released by the US Bureau of Economic Analysis, which is forecasted to grow by 2.1%.
USDJPY Technical Analysis
The US Dollar faced offers recently and moved below the 113.00 support against the Japanese yen. The USDJPY pair is currently holding a major support at 112.00. Let’s see how long can it hold.On the downside, there is a major bullish trend line with support near 112.00. It is holding further declines at the moment. However, the pair needs to move back above 113.00 and the 100 simple moving average (H4) in order to avoid declines.On the upside, the most important hurdle is near a bearish trend line at 113.05. It also coincides with the 38.2% Fib retracement level of the last decline from 114.95 high to 111.93 low. Overall, the pair remains at a risk, but has a chance of a bounce back if stays above 112.00.
Japanese Industrial Production
Today in Japan, the Industrial Production preliminary reading for March 2017 was released by the Ministry of Economy, Trade and Industry. The market was outputs of the Japanese factories and mines to increase by 0.3% in March 2016, compared with the previous month.However, the result was negative, as there was a decline of 0.8% in the Japanese Industrial Production. It resulted in a minor upside reaction in USDJPY towards 112.80.
US GDP
Today, the US will witness the release of the Gross Domestic Product figure for Q4 2016 (preliminary) by the US Bureau of Economic Analysis. The forecast is lined up for the monetary value of all the goods, services and structures produced to increase by 2.1% in Q4 2016, compared with the same quarter a year ago.If the US GDP fails to impress, the USDJPY pair might face more offers and could break below 112.00.
On the downside, there is a major bullish trend line with support near 112.00. It is holding further declines at the moment. However, the pair needs to move back above 113.00 and the 100 simple moving average (H4) in order to avoid declines.On the upside, the most important hurdle is near a bearish trend line at 113.05. It also coincides with the 38.2% Fib retracement level of the last decline from 114.95 high to 111.93 low. Overall, the pair remains at a risk, but has a chance of a bounce back if stays above 112.00.