USDJPY – US Dollar To Japanese Yen Broke Crucial Support
Aayush Jindal
Key Highlights
The US Dollar struggle to move past 112.00 against the Japanese puts it at a risk of decline.
There was a monster support formed at 110.00 on the 4-hours chart of USDJPY, which was broken during the recent decline.
In Japan, the Domestic Corporate Goods Price Index for March 2017 (MoM) released by the Bank of Japan posted a rise of 0.2%.
Moreover, Bank lending for March 2017 (YoY), released by Bank of Japan posted a rise of 3%.
USDJPY Technical Analysis
The US Dollar after trading close to the 111.60 level against the Japanese yen this past week failed and moved down. The USDJPY pair is currently trading lower, and broke a major support at 110.00.The last failure in USDJPY was near 111.60. The stated level was aligned with the 61.8% Fib retracement level of the last decline from the 112.19 high to 110.12 low. Plus, there is a bearish trend line and 100 simple moving average at 111.50 on the 4-hours chart.All these acted as a barrier and pushed the pair below 111.00. The pair is currently trading lower, and already broke a major support around 110.00. The stated level acted as a huge support many times, and a break below it means the pair is under heavy selling pressure.The next important support on the downside is near 109.20 where buyers may take a stand. On the upside, the broken support at 110.00 might act as a resistance if the pair moves higher.
Japan’s Domestic Corporate Goods Price Index
Today in Japan, the Domestic Corporate Goods Price Index for March 2017 was released by the Bank of Japan. The market was aligned for a rise of around 0.2% in the index compared with the previous month.The real outcome was in line with the forecast with an increase of 0.2% in March 2017 (MoM). In terms of the yearly change, there was a rise of 1.4%, which was more than the last +1.0%.The Bank lending report was also released today for March 2017 by Bank of Japan. The outcome was positive, as there was a rise of 3%
Economic Releases to Watch Today
UK Claimant Count Change March 2017 – Forecast -3.0K, versus -11.3K previous.
UK ILO Unemployment Rate Feb 2017 (3M) – Forecast 4.7%, versus 4.7% previous.
UK Average Earing Including Bonus Feb 2017 (3Mo/Year) – Forecast +2.2%, versus +2.2% previous.
US Import Price Index March 2017 (MoM) – Forecast +0.1%, versus +0.2% previous.
US Export Price Index March 2017 (MoM) – Forecast +0.1%, versus +0.3% previous.
BoC Interest Rate Decision – Forecast 0.5%, versus 0.5% previous.
The last failure in USDJPY was near 111.60. The stated level was aligned with the 61.8% Fib retracement level of the last decline from the 112.19 high to 110.12 low. Plus, there is a bearish trend line and 100 simple moving average at 111.50 on the 4-hours chart.All these acted as a barrier and pushed the pair below 111.00. The pair is currently trading lower, and already broke a major support around 110.00. The stated level acted as a huge support many times, and a break below it means the pair is under heavy selling pressure.The next important support on the downside is near 109.20 where buyers may take a stand. On the upside, the broken support at 110.00 might act as a resistance if the pair moves higher.