- – The US Dollar traded above the 111.70 resistance recently against the Japanese Yen.
- – There is a major bullish trend line forming with support at 112.10 on the hourly chart of the USD/JPY pair.
- – Today in Japan, the Nikkei Manufacturing PMI for September 2017 (Prelim) reading was released.
- – The outcome was below the forecast of 53.4, but there was a rise in the PMI from 52.2 to 52.6.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for September 2017 (Prelim) reading was released. The market was positioned for a rise from the last reading of 52.2 to 53.4.
The outcome was below the forecast of 53.4, but there was a rise in the PMI from 52.2 to 52.6. This is a new four-month high, and the Flash Manufacturing Output Index jumped to 53.5, which is a lot more than the last 52.5 and strongest growth for four months. Commenting on the same, the Principal Economist at IHS Markit, Annabel Fiddes, stated:
Latest data signalled a further improvement in growth momentum across Japan’s manufacturing sector with the PMI rising to a four-month high in September.
Overall, the USD/JPY pair might attempt further gains in the near term and could even break 112.60-70.
USD/JPY Technical Analysis
The US Dollar remained in a nice uptrend and traded above the 111.00 handle against the Japanese yen. The USD/JPY pair even managed to break the 112.00 handle and traded towards the 112.70 level
The pair was seen struggling near the 112.70-60 resistance levels and started a downside move. It corrected below the 50% Fib retracement level of the last wave from the 111.10 low to 112.71 high. However, the downside move was protected by the 111.0 support and the 100 hourly simple moving average.
Moreover, the 61.8% Fib retracement level of the last wave from the 111.10 low to 112.71 high also prevented further losses along with a major bullish trend line forming with support at 112.10 on the hourly chart.
The pair is currently following the trend line support and trading above 112.15. Buyers need to gain momentum and take the pair above 112.50 to challenge 112.70 again. A close above 112.70 is needed for further gains in the near term.Tags: Japanese Yen, Nikk, US Dollar, USDJPY Technical Analysis