- US dollar was down against the Japanese yen, but there is a chance of a minor correction before it heads down once again.
- There is a major bearish trend line on the hourly chart of the USDJPY pair, which may act as a resistance for the US Dollar buyers.
- In the US, the S&P/Case-Shiller Home Price Indices released by the Standard & Poor’s posted an increase of 5.7% in Dec 2015, compared with the forecast of 5.8%.
- Selling rallies can be considered for the USDJPY pair in the short term.
The US Dollar was down against the Japanese Yen, and that is the reason why the USDJPY tested the 111.80 levels. There is a major bearish trend line on the hourly chart of the USDJPY pair, which may be seen as a short-term selling area for the US Dollar sellers.
The highlighted trend line is aligned with the 50 and 100 hourly simple moving averages, which means if the pair trades higher, then the trend line may act as a barrier for more gains.
On the downside, the 111.0 area may be tested in the short term.
S&P/Case-Shiller Home Price Indices
Today in the US, the S&P/Case-Shiller Home Price Indices, which examines changes in the value of the residential real estate market in 20 regions across the US was released by the Standard & Poor’s. The forecast was lined up for a rise of 5.8% in Dec 2015. However, the S&P/Case-Shiller Home Price Indices rose 5.7%.
The report highlighted that “The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a slightly higher year-over-year gain with a 5.4% annual increase in December 2015 versus a 5.2% increase in November 2015“.
The US Dollar may trade a few pips higher against the Japanese yen, but the overall trend remains bearish for USDJPY.