USD/JPY Forecast – Can US Dollar Break 113.50 Vs Japanese Yen?
- – The US Dollar is trading in a range above 113.00 against the Japanese Yen, and trading with a positive bias.
- – There is a major trend line with support at 112.90 forming on the hourly chart of the USD/JPY pair.
- – Today in Japan, the Services Purchasing Managers Index (PMI) for June 2017 released by Markit Economics posted an increase from 53.0 to 53.3.
Japan’s Services PMI
Today in Japan, the Services Purchasing Managers Index (PMI) for June 2017 was released by Markit Economics. The market was expecting the Services to remain stable near 53 in June 2017.
The actual result was better than the forecast, as the Services PMI posted an increase from 53.0 to 53.3. There were improvements in the business activity, as it rose to a new 22-month high. On the other hand, the Nikkei Composite Output Index was marginally lower from 53.4 to 52.9 in June 2017, but signaled a solid expansion.
Overall, the USD/JPY pair remains stable and might attempt an upside break above the 113.40-50 resistance in the near term.
USD/JPY Technical Analysis
The US Dollar moved positively from the 111.80 swing low against the Japanese yen and managed to trade above the 112.50 resistance. The USD/JPY pair made a close above the 112.80 resistance, which is a positive sign.
Recently, after trading as high as 113.45, the pair started a correction and moved below the 23.6% Fib retracement level of the last wave from the 112.19 low to 113.45 high. However, the downside move found support near a major hurdle at 112.80.
The pair also remained above the 50% Fib retracement level of the last wave from the 112.19 low to 113.45 high. On the downside, there is a major trend line with support at 112.90 forming on the hourly chart.
As long as the pair is above 112.80 and the trend line support, it can attempt a break above a bearish trend line at 113.30. Above this, the pair could break the 113.40-50 resistance for further gains may be towards the 114.00 handle in the near term.
