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USDJPY – US Dollar To Correct Towards 112.60 Vs Japanese Yen

Key Points

  • The US Dollar has formed a short-term top near 113.44 against the Japanese Yen, and moving lower.
  • There is a major bullish trend line with support at 112.60 forming on the hourly chart of USDJPY.
  • Today in Japan, the Monetary Base for June 2017 was released by the Bank of Japan.
  • The outcome was lower than the forecast, as there was a rise of 17% compared to the 19.2% forecast.

USDJPY Technical Analysis

The US Dollar moved higher during the past few sessions to trade near 113.40-50 against the Japanese Yen. The USDJPY pair faced resistance and later started a downside correction below the 113.30 support.

USDJPY Technical Analysis

The pair is currently moving lower and already broke the 23.6% Fib retracement level of the last wave from the 111.73 low to 113.44 high.

On the downside, there is a major bullish trend line with support at 112.60 forming on the hourly chart. The trend line support is near the 50% Fib retracement level of the last wave from the 111.73 low to 113.44 high and 21 hourly simple moving average. So, buying dips near 112.60 might be considered.

Japan’s Monetary Base

Today in Japan, the Monetary Base figure for June 2017 was released by the Bank of Japan. The market was positioned for an increase of 19.2% in the Monetary Base compared with the same month a year ago.

The actual result was lower than the forecast, as there was a rise of 17%. In the US, the Total Vehicle sales for June 2017 was recently released by the Autodata Corp. The outcome was lower than the forecast of 16.60M, as the US Total Vehicle sales were 16.51M in June 2017.

Overall, there is a chance of USDJPY extending the current correction towards 112.60 in the near term where buyers may protect downsides.

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