USDJPY – US Dollar Still In Trouble versus Japanese Yen
Aayush Jindal
Key Highlights
The US Dollar fell further against the Japanese yen, and moved below the 111.00 level.
There are a couple of bearish trend lines with resistances at 111.10 and 111.30 formed on the hourly chart of USDJPY.
The Japanese Retail Trade for Feb 2017 (YoY) released by the Ministry of Economy, Trade and Industry posted a rise of 0.1%.
The Japanese Large Retailers' Sales registered a decline of 2.7% in Feb 2017, compared with the last -1.1%.
USDJPY Technical Analysis
The US Dollar after a short-term bounce towards 111.50 against the Japanese yen found sellers. The USDJPY is currently correcting higher, but likely to struggle near 111.50-80.Once the pair broke the 112.00 support, it came under a lot of bearish pressure. As a result, there was a close below 111.00 as well with a new weekly low of 110.10. Later, the pair started a correction, but faced offers near the 23.6% Fib retracement level of the last decline from the 112.89 high to 110.10 low.There are also a couple of bearish trend lines with resistances at 111.10 and 111.30 formed on the hourly chart. So, any upsides from the current levels might face sellers near 111.30.On the downside, a test of 110.50 is likely if the current resistance stays intact.
Japan’s Retail Trade
Today in Japan, the Retail Trade for Feb 2017 (YoY) was released by the Ministry of Economy, Trade and Industry. The market was positioned for an increase of 0.5% in the retail trade in Feb 2017, compared with the same month a year ago. However, the result was disappointing, as there was a rise of only 0.1%.In terms of the monthly change, the Retail Trade was forecasted to rise by 0.2% in Feb 2017, compared with the previous month (seasonally adjusted). The result was as forecasted, as there was a rise of 0.2%. Overall, the report was not encouraging, which is why USDJPY managed to correct above 111.00.
Other Economic Releases to Watch Today
German Import Price Index for Feb 2017 (YoY) – Forecast +7%, versus +6% previous.
France Consumer Confidence for March 2017 - Forecast 100, versus 100 previous.
US Pending Home Sales for Feb 2017 (YoY) - Forecast +2.1%, versus -2.8% previous.
Once the pair broke the 112.00 support, it came under a lot of bearish pressure. As a result, there was a close below 111.00 as well with a new weekly low of 110.10. Later, the pair started a correction, but faced offers near the 23.6% Fib retracement level of the last decline from the 112.89 high to 110.10 low.There are also a couple of bearish trend lines with resistances at 111.10 and 111.30 formed on the hourly chart. So, any upsides from the current levels might face sellers near 111.30.On the downside, a test of 110.50 is likely if the current resistance stays intact.