The US Dollar after a solid ride against the Japanese yen found sellers and moved down.
There was a move below the 200 simple moving average on the 4-hours chart of USDJPY, which is a bearish sign.
Today in Japan, the Gross Domestic Product figure was released by the Cabinet Office.
The forecast was slated for no change in Q2 2016, but there was a rise of 0.2%.
USDJPY Technical Analysis
The US Dollar after a solid ride towards the 104.30 level against the Japanese yen faced selling pressure, and as a result, the USDJPY pair is now in a downtrend.The USDJPY pair recently broke the 200 simple moving average on the 4-hours chart, which may ignite more losses. Furthermore, there was a move below the 38.2% Fib retracement level of the last leg from the 99.54 low to 104.31 high as well.So, there is a chance of the pair to move down further. On the downside, there is a major support trend line waiting to provide bids. It must hold if the US Dollar buyers want to contain losses moving forward in USDJPY.
Japan Gross Domestic Product
Today Japan saw a crucial economic release, as the Gross Domestic Product was reported by the Cabinet Office. It shows the monetary value of all the goods, services and structures produced in Japan within a given period of time and was forecasted to post no change in Q2 2016, compared with the preceding quarter.However, the Gross Domestic Product increased by 0.2%. In terms of the yearly change, the Japan Gross Domestic Product posted an increase of 0.7%, which was a lot more than the forecast.
Japanese Current Account
There was another major release, as the Current Account report was published by the Ministry of Finance. The forecast was slated for the net flow of current transactions, including goods, services, and interest payments into and out of Japan to post a surplus of ¥2,090.0B in July 2016.However, the Japanese Current Account posted a trade surplus of ¥1,938.2B, which was a bit on the lower side. All in all, the Japanese yen has all the reasons to remain in an uptrend in the short term.
The USDJPY pair recently broke the 200 simple moving average on the 4-hours chart, which may ignite more losses. Furthermore, there was a move below the 38.2% Fib retracement level of the last leg from the 99.54 low to 104.31 high as well.So, there is a chance of the pair to move down further. On the downside, there is a major support trend line waiting to provide bids. It must hold if the US Dollar buyers want to contain losses moving forward in USDJPY.