- – The US Dollar fell sharply this week against the Japanese yen to trade below 109.60 and 109.00.
- – There are two bearish trend lines with resistance near 109.15 on the hourly chart of USD/JPY, acting as a hurdle for an upside move.
- – Earlier today, the Japanese Industrial Production for Feb 2017 (MoM) released by the Ministry of Economy, Trade and Industry posted a rise of 3.2%, compared with the last +2%.
Japanese Industrial Production
Today in Japan, the Industrial Production for Feb 2017 (MoM) was released by the Ministry of Economy, Trade and Industry. The market was positioned for a minor increase in Production in Feb 2017, compared with the previous month.
The outcome was better, as there was an increase of 3.2% in the Industrial Production in Feb 2017. It was more than the last rise of 2%. When we look at the yearly change, there was an increase of 4.7% in Feb 2017, but it was lower than the last +4.8%. On the other hand, the Japanese Capacity Utilization posted a healthy rise of 3.2%, more than the last +0.1%.
Overall, the Japanese yen has no reason to decline, which is why USD/JPY may continue to decline as long as below 109.20.
USD/JPY Technical Analysis
The US Dollar started a decline from the 111.00 high against the Japanese yen, and traded below a few important support levels like 110.60, 109.50 and 109.00. The USD/JPY pair traded as low as 108.71 before attempting a correction.
The pair started a correction, and traded above the 38.2% Fib retracement level of the last decline from the 109.86 high to 108.71 low. However, the upside remained capped around 109.50. The 61.8% Fib retracement level of the last decline from the 109.86 high to 108.71 low acted as a resistance and pushed the pair back lower.
Moreover, there are two bearish trend lines with resistance near 109.15 on the hourly chart of USD/JPY. These are preventing gains in the short term above 109.20. On the downside, a break below the recent low of 108.71 may spark more losses towards 108.40 in the near term.Tags: Japanese Industrial Production, Japanese Yen, US Dollar, USDJPY Technical Analysis