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Market Analysis

Home » Technical Analysis » Daily » USDJPY – Dollar Looks Set For More Gains

USDJPY – Dollar Looks Set For More Gains

Posted by FXTimes in Daily - August 12th, 2016 10:05 am GMT

dollar USDJPY

Key Points

  • The US Dollar bounced recently against the Japanese yen and may trade further higher.
  • There was a bearish trend line formed on the hourly chart of the USDJPY pair, which was broken during the recent upside move.
  • Earlier today, the Japanese Securities investment data was released by Ministry of Finance.
  • The outcome was positive, as there was a reading of ¥891.8B, more than the last reading of ¥312.1B.

Technical Analysis

The US Dollar after trading as low as 101.00 against the Japanese yen found bids and moved sharply higher. During the upside move, the USDJPY pair broke a bearish trend line formed on the hourly chart to clear the way for more gains.

USDJPY

The pair is already above the 61.8% Fib retracement level of the last drop from the 102.69 high to 101.00.

Overall, the pair may continue to move higher, and may even challenge the last swing high of 102.69.

Japanese Securities Investment

Earlier today during the Asian session, the Securities investment, which referrers to bonds issued in a domestic market by a foreign entity in the domestic market’s currency was released by Ministry of Finance.

The forecast was lined up for a better reading than the last time, and the outcome was the same. The Securities investment came in at ¥891.8B, more than the last reading of ¥312.1B. Later today, the US Retail Sales, which measures the total receipts of retail stores will be released by the US Census Bureau. The market is expecting an increase of 0.4% in sales in July 2016, less than the last rise of 0.6%. If the outcome exceeds the forecast, then there is a chance of more gains in the US Dollar in the short term.

No doubt, the USDJPY pair is currently in an uptrend and may continue to gain pace in the near term.

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