USD/JPY Forecast – US Dollar Broke Key Support Vs Japanese Yen

USD/JPY Forecast – US Dollar Broke Key Support Vs Japanese Yen

  • – The US Dollar after trading close to the 111.00 handle found sellers and moved down against the Japanese Yen.
  • – There was a break below a major bullish trend line with support at 110.65 on the hourly chart of the USD/JPY pair.
  • – Today in Japan, the Trade Balance figure for June 2017 was released by the Customs Office.
  • – The outcome was below the forecast of ¥549.0B, as the trade surplus was ¥518.6B.

 

Japan’s Trade Balance

Today in Japan, the Trade Balance figure for June 2017 was released by the Customs Office. The market was positioned for a trade surplus of ¥549.0B, compared with the last deficit of ¥115.1B.

 

The actual result was below the forecast of ¥549.0B, as the trade surplus was ¥518.6B. On the other hand, the Current Account was positive, as there was a trade surplus of ¥934.6B, more than the forecast of ¥814.0B, but less than the last ¥1,653.9B.

 

Overall, the result was neutral, and there are chances of USD/JPY declining in the near term below the 110.50 support area.

 

USD/JPY Technical Analysis

The US Dollar mostly traded with a positive bias and traded towards the 111.00 handle against the Japanese yen. The USD/JPY pair traded as high as 111.04 recently from where a correction wave below the 111.00 level was initiated.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

The pair moved down and broke the 23.6% Fib retracement level of the last wave from the 109.84 low to 111.04 high. During the downside move, there was a break below a major bullish trend line with support at 110.65 on the hourly chart.

 

The pair also moved below a contracting triangle pattern with support at 110.70. The downside move found support near the 38.2% Fib retracement level of the last wave from the 109.84 low to 111.04 high and the 100 hourly simple moving average.

 

There is a chance of a minor upside move towards 110.75, but the pair is likely to face sellers in the near term. Selling rallies towards the 110.75 and 110.90 levels may be considered for a move towards the 110.40 support area.

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