- The US Dollar recently found resistance near 114.70 against the Japanese yen and traded lower.
- There was a bullish trend line formed on the hourly chart of USDJPY, which was broken to clear further downsides below 114.20.
- Today in Japan, the Monetary Base report was released by the Bank of Japan.
- There outcome was mixed, as there was an increase of 21.5% in Nov 2016, compared with Nov 2015.
USDJPY Technical Analysis
The US Dollar recently failed to break the 114.70 resistance area twice against the Japanese yen, and traded down. There was a bullish trend line formed on the hourly chart of USDJPY, which was cleared to ignite a downside move.
The pair traded as low as 113.58 and currently attempting to trade higher. It now above the 21 hourly simple moving average.
However, on the upside the pair may face resistance near the 61.8% Fib retracement level of the last drop from the 114.71 high to 113.58 low at 114.28.
BOJ Monetary Base
Today in Japan, the Monetary Base, which is the “Currency Supplied by the BoJ” including all the JPY in circulation, encompassing notes and coins as well as money held in bank accounts was released by the Bank of Japan.
The outcome was mixed, as there was an increase of 21.5% in Nov 2016, compared with the same month a year ago. Recently, the US Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. It posted a rise from the last reading of 53.9 to 54.1 in Nov 2016. The outcome was positive, which is helping the greenback in trading higher.
Overall, it looks like the USDJPY pair may trade further higher, but likely to face sellers near the 114.25-30 area.