- – The US Dollar had an impressive run so far this week and traded towards 111.80 against the Japanese Yen.
- – The USD/JPY pair recently made a downside move and broke a bullish trend line at 111.45 on the hourly chart.
- – Today in Japan, the All Industry Activity Index for April 2017 released by the Ministry of Economy, Trade and Industry posted an increase of 2.1%.
Japan’s All Industry Activity Index
Today in Japan, the All Industry Activity Index for April 2017 was released by the Ministry of Economy, Trade and Industry. The market was expecting the All Industry Activity Index to increase by 1.7%, compared to the last decline of 0.6%.
The actual result was better than the forecast, as the All Industry Activity Index increased 2.1%. However, the last reading was revised from -0.6% to -0.7%. The Indices of Construction Industry Activity posted a rise of 7.3% and came in at 118.9. And, the Indices of Industrial Production climbed up by 4% to 103.8. Lastly, the Indices of Tertiary Industry Activity increased by 1.2% to 104.8.
Overall, the USD/JPY pair may correct a few pips lower in the near term towards 111.00 as long as the 111.50 resistance is intact.
USD/JPY Technical Analysis
The US Dollar traded higher this week and broke the 111.50 resistance support against the Japanese yen to trade as high as 111.78. The USD/JPY pair later faced sellers and started a correction moving below the 111.70 support.
During the downside, the pair broke the 23.6% Fib retracement level of the last wave from the 110.64 low to 111.78 high and a bullish trend line at 111.45 on the hourly chart. It has opened the doors for more declines in the near term towards 111.00.
The pair is currently testing the 50% Fib retracement level of the last wave from the 110.64 low to 111.78 high. There is a chance of a minor jump towards the 111.50 where sellers may appear and protect gains.
In the short term, the pair is likely to move down and test at least 111.00 and the 100 hourly simple moving average. Below 111.00, the next support sits at 110.80.Tags: Japanese Yen, US Dollar, USD/JPY, USDJPY Technical Analysis