- – The US Dollar likely made a short-term top near 110.80 against the Japanese Yen, and likely to extend losses.
- – The USD/JPY pair broke a major support trend line at 110.30, and currently attempting a break below another at 110.20 on the hourly chart.
- – Recently in Japan, the Machinery New orders for April 2017 released by the Cabinet Office posted a decline of 3.1% (MoM).
Japan’s Machinery New Orders
Recently in Japan, the Machinery New orders figure for April 2017 was released by the Cabinet Office. The market was positioned for no major decline in orders in April 2017, compared with the previous month.
However, the actual result was disappointing, as there was a decline of 3.1%. In terms of the yearly change, the market was aligned for an increase of 6.3% in order in April 2017. The Machinery New orders increased by 2.7%, but it was better than the last -0.7%. Overall, the result was mixed, but not encouraging.
The USD/JPY pair is currently struggling, and if there is a close below 110.20, there can be more declines in the near term.
USD/JPY Technical Analysis
The US Dollar maintained a nice uptrend this past week and traded above 110.50 against the Japanese Yen. The USD/JPY pair traded as high as 110.80 where it faced sellers. The 110.80-111.00 resistance area is an important hurdle for buyers, and likely to produce more declines.
The pair declined after the rejection, and moved below the 23.6% Fib retracement level of the last wave from the 109.11 low to 110.80 high. There was also a break below a support trend line at 110.30 on the hourly chart. It has opened the doors for more declines. At the moment, the pair is attempting a break below another trend line support at 110.20.
The same area also coincides with the 38.2% Fib retracement level of the last wave from the 109.11 low to 110.80 high. So, a break and close below 110.15 could open the doors for further downsides below 110.00. The next important support is around the 50% Fib retracement level of the last wave from the 109.11 low to 110.80 high at 109.90, which is just above the 100 hourly simple moving average.Tags: Japanese Yen, US Dollar, USDJPY Technical Analysis