- – The US Dollar is moving higher and is currently placed nicely above 107.70 against the Japanese Yen.
- – There is a crucial ascending channel forming with support at 107.65 on the hourly chart of the USD/JPY pair.
- – Recently in Japan, the Nikkei Manufacturing PMI for April 2018 (Prelim) was released.
- – The outcome was above the market forecast of 52.6 as there was a rise in the PMI from 53.1 to 53.3.
Japan’s Nikkei Manufacturing PMI
Recently in Japan, the Nikkei Manufacturing PMI for April 2018 (Prelim) was released. The market was positioned for a decline in the PMI from the last reading of 53.1 to 52.6 in April 2018.
The result was above the market forecast of 52.6 as there was a rise in the PMI from 53.1 to 53.3. All three key areas – Output, new orders and employment increased at a faster rate. Joe Hayes, Economist at IHS Markit, stated:
Survey data depicted a positive backdrop in the Japanese manufacturing sector during April. The improvement in the headline PMI was underpinned by stronger rates of growth in output, new orders and employment. Furthermore, business confidence strengthened, while output prices were hiked to a stronger degree, signalling optimism in demand conditions.
The USD/JPY pair was not impacted much and it remains in a bullish zone towards the 108.00 level in the near term.
USD/JPY Technical Analysis
The US Dollar formed a decent support above 106.80 against the Japanese Yen, and started an upside move. The USD/JPY pair gained pace, broke many resistances such as 107.00 and 107.50, and settled above the 100 hourly simple moving average.
The pair recently traded above the 76.4% Fib retracement level of the last drop from the 107.77 high to 106.88 low. More importantly, it is currently trading a few pips above the last swing high at 107.77.
This means the pair may perhaps continue to move higher and it could test the 1.236 fib extension of the last drop from the 107.77 high to 106.88 low. It could even test the 108.00 resistance level in the near term.
On the downside, there are many supports above 107.50. There is also a crucial ascending channel forming with support at 107.65 on the hourly chart of the USD/JPY pair. Therefore, any dips toward 107.50 remains supported.Tags: Japanese Yen, US Dollar, USD/JPY, USD/JPY Technical Analysis