USDJPY – US Dollar Remains In Downtrend Vs Japanese Yen
Aayush Jindal
Key Highlights
The US Dollar fell sharply during the past few days, and moved below the 114.00 support against the Japanese yen.
The USDJPY pair also broke a bullish trend line with support at 113.10 on the 4-hours chart.
Today, the Japanese Merchandise Trade Balance for Feb 2017 released by the Ministry of Finance posted a trade surplus of ¥813.4B.
The Japanese Adjusted Merchandise Trade Balance for Feb 2017 posted a trade surplus of ¥680.3B.
USDJPY Technical Analysis
The US Dollar was under a lot of pressure, as it moved below the 112.00 support against the Japanese yen. The USDJPY pair is currently correcting, but likely to face sellers near 113.00.During the downside move, the pair broke a bullish trend line with support at 113.10 on the 4-hours chart. It also moved below the 100 and 200 simple moving average at 113.80 and 113.49, signaling a downside move.The pair traded as low as 111.49, and currently correcting. On the upside, the 23.6% Fib retracement level of the last decline from the 115.49 high to 111.49 low might act as a resistance. Moreover, there is also a bearish trend line at 113.25. It also coincides with the 38.2% Fib retracement level of the last decline from the 115.49 high to 111.49 low and 100 SMA.So, there is a major resistance area formed near 113.20-113.40 where sellers might appear if the pair corrects higher.
Japanese Merchandise Trade Balance
Earlier today in Japan, the Merchandise Trade Balance for Feb 2017 was released by the Ministry of Finance. The market was aligned for the balance amount between import and export to post a deficit of around ¥-650B in Feb 2017, compared with the last ¥-1,086.9B. However, the result was positive, as there was a trade surplus of ¥813.4B.The Japanese Adjusted Merchandise Trade Balance for Feb 2017 was forecasted to post a surplus of ¥550B. Again, the outcome was positive, as the trade surplus was ¥680.3B. These results helped the Japanese yen to gain momentum vs the US Dollar.
Other Economic Releases to Watch Today
US Existing Home Sales for Feb 2017 – Forecast -2% (MoM) versus +3.3% previous.
US House Price Index for Jan 2017 - Forecast +0.4% (MoM) versus +0.4% previous.
Euro Zone Current Account for Jan 2017 - Forecast 29.3B versus 31.0B previous.
During the downside move, the pair broke a bullish trend line with support at 113.10 on the 4-hours chart. It also moved below the 100 and 200 simple moving average at 113.80 and 113.49, signaling a downside move.The pair traded as low as 111.49, and currently correcting. On the upside, the 23.6% Fib retracement level of the last decline from the 115.49 high to 111.49 low might act as a resistance. Moreover, there is also a bearish trend line at 113.25. It also coincides with the 38.2% Fib retracement level of the last decline from the 115.49 high to 111.49 low and 100 SMA.So, there is a major resistance area formed near 113.20-113.40 where sellers might appear if the pair corrects higher.