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Sep 25, 2016

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Market Analysis

Home » Technical Analysis » Daily » USDJPY Back Towards Major Support

USDJPY Back Towards Major Support

Posted by FXTimes in Daily - April 28th, 2016 12:28 pm GMT

dollar

Key Points

  • US dollar was crushed against the Japanese yen today, as the latter one gained traction.
  • The Bank of Japan kept the policy on hold, which ignited a downside move in the USDJPY pair.
  • In Japan, the Unemployment Rate released by the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau posted a decline from 3.3% to 3.2%.
  • Japanese Retail Trade released by the Ministry of Economy, Trade and Industry posted a decline of 1.1% in March 2016, which was less than the forecast of -1.5%.

Technical Analysis

As mentioned the Japanese Yen climbed higher after the Bank of Japan kept the policy on hold. The USDJPY pair tumbled and traded down by more than 100 pips. The pair is currently trading near a support trend line on the 4-hours chart, which may play an important role in the short term.

USDJPY

Selling rallies can be considered in the pair, as the market sentiment is bearish at present as long as it is below the 100 simple moving average (H4 chart).

Buying dips near the broken trend line or 200 SMA may be considered in the short term.

Japanese Unemployment Rate and Retail Trade

Today Japan saw a couple of major economic releases, and the most important one was the BOJ monetary policy, which was kept on hold. Moreover, the Unemployment Rate released by the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau posted a decline from 3.3% to 3.2% in March 2016.

Furthermore, the Japanese Retail Trade report was also released by the Ministry of Economy, Trade and Industry. The forecast was slated for a decline of 1.5%, but it came in at -1.1%.

The Japanese yen gained heavily, but the USDJPY pair is currently testing an important support area, which holds the key moving ahead.

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