USD/JPY Forecast – US Dollar Remains Buy Dips Vs Japanese Yen
- – The US Dollar remained in a nice uptrend, as it settled above the 113.20 resistance against the Japanese Yen.
- – There is a major bullish trend line with support at 113.30 formed on the hourly chart of USD/JPY, which may act as a buy zone if the pair moves down.
- – Today in Japan, the Leading Economic Index for March 2017 (Preliminary) released by the Cabinet Office posted a rise from the last revised reading of 104.7 105.5.
Japan’s Leading Economic Index
In Japan, the Leading Economic Index for March 2017 (Preliminary) was released by the Cabinet Office. The market was positioned for the Index to post a minor increase from the last reading of 104.8 to 105.0 in March 2017.
However, the result was a bit better than the market forecast, as the Leading Economic Index increased to 105.5. On the other hand, there was a minor downside revision for the last reading from 104.8 to 104.7. On the flip side, the Coincident Index was expected to post a minor decline from the last reading of 115.3 to 115.0 in March 2017 (Preliminary), but there was a decline to 114.6 and the last reading was revised down from 115.3 to 115.2.
Overall, the result was mixed, and may not help the Japanese Yen, which means USD/JPY could remain above the 113.20 support.
USD/JPY Technical Analysis
The US Dollar had a good bullish run against the Japanese Yen, as it moved above a couple of important resistances like 112.80 and 113.20. The USD/JPY pair recently traded as high as 114.29 where it faced sellers and started a correction.
It is currently trading below the 23.6% Fib retracement level of the last wave from the 112.39 low to 114.29 high. So, it may extend the decline, but there is a major bullish trend line with support at 113.30 formed on the hourly chart, waiting to act as a hurdle for sellers on the downside.
Moreover, the same trend line also coincides with the 100 hourly simple moving average and the 50% Fib retracement level of the last wave from the 112.39 low to 114.29 high. So, if the pair continues its slide, it is likely to find support at 113.30-20.
