- – The US Dollar after trading as low as 110.62 against the Japanese yen started a recovery.
- – During the recovery, the USD/JPY pair broke a bearish trend line with resistance at 111.15 on the hourly chart.
- – The Japanese Leading Economic Index released by the Cabinet Office posted a minor rise from the last revised reading of 104.8 to 104.9 in Jan 2017.
Japanese Leading Economic Index
Today during the Asian session, the Japanese Leading Economic Index for Jan 2017 was released by the Cabinet Office. The market was not expecting any major decline from the last reading of 105.5 in Jan 2017.
The outcome was on the lower side, as there was a decline to 104.9 in Jan 2017. However, it should not be considered as a real decline, as the last reading was revised to 104.8 from 105.5. So, considering the revised reading, there was a rise to 104.9. The Coincident Index on the other hand, posted a decline from the last revised reading of 115.5 to 115.1 in Jan 2017. The revision was on the higher side, as it moved to 115.5 from 114.9.
Overall, the USD/JPY pair might trade a few pips higher, but likely to face resistances near 111.80 and 112.40.
USD/JPY Technical Analysis
The US Dollar fell sharply this week against the Japanese to move below 112.00. The USD/JPY pair traded as low as 110.62 from where a recovery wave was initiated. The pair has moved above the 23.6% Fib retracement level of the last decline from the 112.85 high to 110.62 low.
However, the most important move was a break above a bearish trend line with resistance at 111.15 on the hourly chart. The pair might trade further higher towards 111.80. There is a major hurdle waiting around the mentioned 111.80 level in the form of the 100 hourly SMA.
Moreover, the 50% Fib retracement level of the last decline from the 112.85 high to 110.62 low is also around 111.80. So, a break won’t be easy, and even if there is a break above 111.80, 112.00 is waiting on the upside. The stated level was a support earlier, and now 112.00 may act as a resistance.Tags: Japanese Yen, US Dollar, USDJPY Technical Analysis