- The US Dollar struggled to break the 113.20 resistance against the Japanese Yen.
- There is a new bearish trend line forming with resistance at 112.85 on the hourly chart of USDJPY.
- Recently in Japan, the Foreign investment in Japan stocks (Sep 29, 2017) figure was released.
- The outcome was above the forecast, as the foreign investment in Japan stocks were ¥953.3B.
USDJPY Technical Analysis
The US Dollar remains in an uptrend and is positioned well above the 112.00 handle against the Japanese Yen. The USDJPY pair recently struggled to break the 113.20 resistance and started a downside move.
The pair moved down and broke the 112.60 support along with the 21 hourly simple moving average. There was a test of a major support area near 112.35 from where the pair recovered and moved above the 38.2% Fib retracement level of the last decline from the 113.19 high to 112.33 low.
At the moment, a new bearish trend line with resistance at 112.85 on the hourly chart and the 21 hourly simple moving average are acting as hurdle for more gains. A break above 112.85 is needed for the pair to move back towards 113.20 in the near term.
Foreign Investment in Japan Stocks
Recently in Japan, the Foreign investment in Japan stocks (Sep 29, 2017) figure was released. The market was positioned for investment in Japan stocks to be around ¥-500B.
The actual result was above the forecast of ¥-500B, as the foreign investment in Japan stocks were ¥953.3B. The last reading was revised to ¥-923.5B. Looking at the Foreign bond investment, it came in at ¥-1,014.1B, down from the last revised ¥242.5B.
Overall, the USDJPY pair might continue to trade in a range and remains supported above the 112.35 level.