- US Dollar traded down against the Japanese Yen recently, but heading towards a major support area.
- There is a bullish trend line formed on the hourly chart of the USDJPY pair, which can be seen as a buy zone.
- The 100 and 200 hourly simple moving average are around the trend line support area to act as a hurdle for sellers.
- Today, the Japanese New orders, released by the Cabinet Office posted an increase of 15% in Jan 2016, more than the forecast of 3%.
The US dollar struggled to break the 114.0 level recently against the Japanese Yen and moved down. There is a bullish trend line formed on the hourly chart of the USDJPY pair, which is playing its part in staling further losses.
The pair is trading near the 200 hourly simple moving average, which providing support to the pair. Moreover, the 100 hourly simple moving average is also on the downside to act as a support.
On the upside, the 114.00 remains a major resistance, and break above it is needed for a move towards 114.50.
Japanese Machinery New Orders
Today, the Japanese New orders, which are the total value of machinery orders placed at major manufacturers in Japan were released by the Cabinet Office. The market was expecting an increase of 3% in Jan 2016, compared with the previous month. . However, the result was above the forecast, as the rise was 15%.
The report stated that in the “January-March period the total amount of machinery orders was forecasted to rise by 0.8% and private-sector orders, excluding volatile ones, were forecasted to increase by 8.6% from the previous quarter respectively. This forecast was basically made by summing up the figures from 280 machinery manufacturers”.
Overall, the USDJPY pair is trading near a monster support, and as long as it holds an upside move is possible.