USDJPY – US Dollar Remains Buy On Dips Vs Japanese Yen
Aayush Jindal
USDJPY – US Dollar Remains Buy On Dips Vs Japanese Yen
Key Highlights
US Dollar managed to bounce recently against the Japanese Yen from a perfect technical support.
There is a bullish trend line formed on the 4-hours chart of USDJPY, which acted as a barrier for sellers and pushed the pair back up.
Today in Japan, the Foreign investment in Japan stocks figure was released by Ministry of Finance, which posted a reading of ¥-479.0B.
Moreover, the Japanese Foreign bond investment posted a reading of ¥-607.6B.
USDJPY Technical Analysis
The US Dollar recently traded close to the 101.50 level where it found support versus the Japanese yen. The USDJPY pair is currently recovering and looks set for more gains.The recent upside move in USDJPY was convincing, as it came from a technical level. There is a bullish trend line on the 4-hours chart of USDJPY along with the 100 simple moving average around the same level, which acted as a support area.At the moment, the pair is in the 4th wave and may test the bullish trend line support where buyers might take a stand. As long as the pair is above it, there is a chance of another rally in the near term.
Economic Reports in Japan
Today during the Asian session, the foreign investment in Japan stocks figure was released by Ministry of Finance. The outcome was on the lower side, as it came in at ¥-479.0B.Moreover, the Japanese Foreign bond investment also posted a disappointing reading of ¥-607.6B. However, the Japanese yen was not impacted much after the result. The USDJPY pair declined and currently positioning for short-term losses, as it remains supported around the highlighted trend line.
US Retail Sales
In the US today, the Retail Sales report will be released by the US Census Bureau. The forecast is slated for no change in the total receipts of retail stores in August 2016, compared with July 2016.In another release, the US Initial Jobless Claims figure will be reported by the US Department of Labor. The forecast is slated for a minor rise from the last reading of 259K to 265K. If the actual result is better, then the US Dollar may gain traction in the near term.
The recent upside move in USDJPY was convincing, as it came from a technical level. There is a bullish trend line on the 4-hours chart of USDJPY along with the 100 simple moving average around the same level, which acted as a support area.At the moment, the pair is in the 4th wave and may test the bullish trend line support where buyers might take a stand. As long as the pair is above it, there is a chance of another rally in the near term.