USDJPY – US Dollar Targets Fresh High Vs Japanese Yen
Aayush Jindal
Key Highlights
The US Dollar remains in a solid uptrend with a close above 112.80 against the Japanese Yen.
There is a monster support formed on the downside near 113.00 with two bullish trend lines on the 4-hours chart of USDJPY.
Today in Japan, the Bank lending for April 2017 (YoY), released by Bank of Japan registered a rise of 3%.
The Japanese Trade Balance March 2017 (BOP basis) released by the Customs Office posted a trade surplus of ¥865.5B, compared with the ¥1,076.8B.
USDJPY Technical Analysis
The US Dollar after a break above 112.80 gained pace against the Japanese Yen and moved towards 114.40. The USDJPY pair traded as high as 114.32 from where a tiny correction is initiated.The pair may head towards the 23.6% Fib retracement level of the last wave from 112.08 low to 114.32 high. On the downside, there are many supports, starting with 113.40 to 113.20.There are also two bullish trend lines on the 4-hours chart of USDJPY at 113.00, waiting to act as a hurdle for sellers if the pair moves down.So, if the pair corrects lower, it may find support anywhere from 113.40 to 113.00. On the upside, a break above 114.30 might call for a push towards 114.80 in the near term.
Japan’s Bank Lending and Trade Balance
Recently in in Japan, the Bank lending for April 2017 was released by Bank of Japan. The market was expecting a rise of around 3.2% in April 2017, compared with the same month a year ago.The actual result was a bit lower, as the Bank lending increased 3% in April 2017. The Japanese Trade Balance March 2017 (BOP basis) was also released today by the Customs Office.It was forecasted to post a surplus of above ¥1000.B, but it came in at ¥865.5B, compared with the ¥1,076.8B.Overall, the Japanese Yen may extend its decline, and USDJPY may rise towards 114.80.
Economic Releases to Watch Today
German Wholesale Price Index for April 2017 (MoM) – Forecast +0.1%, versus 0% previous.
German Wholesale Price Index for April 2017 (YoY) – Forecast +4.8%, versus +4.7% previous.
UK Industrial Production for March 2017 (MoM) - Forecast -0.2%, versus -0.7% previous.
UK Manufacturing Production for March 2017 (MoM) - Forecast 0%, versus -0.1% previous.
UK Trade Balance non-EU for March 2017 - Forecast £-3.45B, versus £-3.75B previous.
UK Goods Trade Balance for March 2017 - Forecast £-11.60B, versus £-12.46B previous.
BoE Interest Rate Decision - Forecast 0.25%, versus 0.25% previous.
US Producer Price Index April 2017 (MoM) – Forecast 0.2%, versus -0.1% previous.
US Initial Jobless Claims - Forecast 238K, versus 245K previous.
The pair may head towards the 23.6% Fib retracement level of the last wave from 112.08 low to 114.32 high. On the downside, there are many supports, starting with 113.40 to 113.20.There are also two bullish trend lines on the 4-hours chart of USDJPY at 113.00, waiting to act as a hurdle for sellers if the pair moves down.So, if the pair corrects lower, it may find support anywhere from 113.40 to 113.00. On the upside, a break above 114.30 might call for a push towards 114.80 in the near term.