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Dec 08, 2016

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Market Analysis

Home » Technical Analysis » Daily » USDJPY – Dollar Facing Major Resistance

USDJPY – Dollar Facing Major Resistance

Posted by FXTimes in Daily - March 28th, 2016 12:05 pm GMT

The-Death-Of-The-Dollar

Key Points

  • US dollar surged higher against the Japanese Yen recently, but currently facing a major resistance area.
  • There is a critical bearish trend line formed on the 4-hours chart of the USDJPY pair, which might act as a barrier for more gains.
  • The Japanese Unemployment Rate will be released by the Ministry of Health, Labour and welfare during the next Asian session.
  • The market is expecting no change in the Japanese Unemployment rate and forecast is of a stable reading of 3.2% in Feb 2016.

Technical Analysis

The US Dollar surged higher against the Japanese Yen, and traded above all three important simple moving averages on the 4-hours chart – 100, 200 and 50. However, the USD/JPY pair is currently trading near a major bearish trend line formed on the 4-hours chart, which is acting as a resistance.

USDJPY

If the pair fails to clear the resistance area, then a move back towards the 100 SMA (H4 chart) is possible in the near term.

A break above the trend line resistance could take the pair towards the 114.50 levels.

Japanese Unemployment Rate

Japan will witness a couple of key releases during the upcoming session. The most important one will be the Japanese Unemployment Rate, which will be released by the Ministry of Health, Labour and welfare during the next Asian session. The forecast is lined up for no change in the Japanese Unemployment rate from 3.2% in Feb 2016%.

Moreover, the Jobs/applicants ratio, which is obtained by dividing monthly active job openings by monthly active applications will be released by the Japan Institute of Labour. The forecast is 1.29, compared with the last ratio of 1.28.

Overall, it won’t be easy for the US dollar buyers to break the highlighted trend line and resistance area in USD/JPY.

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