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Market Analysis

Home » Technical Analysis » Daily » USDJPY – Japanese Yen To Gain Further?

USDJPY – Japanese Yen To Gain Further?

Posted by FXTimes in Daily - September 16th, 2016 7:19 am GMT

US dollar USDJPY Japanese yen

Key Points

  • The US Dollar is currently facing sellers against the Japanese yen and remains at a risk.
  • There is a descending channel pattern formed on the hourly chart of the USDJPY pair, which is pushing the price down.
  • Recently, the US Initial Jobless Claims report was released by the US Department of Labor.
  • The US Initial Jobless Claims posted an increase from the last reading of 259K to 260K.

USDJPY Technical Analysis

The US Dollar recently tested the 103.40 resistance zone versus the Japanese yen, but failed to sustain the momentum. As a result, there was a downside move below 102.40. The USDJPY pair is currently following a descending channel pattern formed on the hourly chart.

USDJPY Technical Analysis

As long as the pair is in the highlighted channel pattern, it may continue to face sellers and could decline further.

There is even a chance of a break below 101.90 for a move towards 101.60.

US Initial Jobless Claims

Recently, the US saw a few economic releases, including the US Initial Jobless Claims by the US Department of Labor. The market was expecting an increase in the number of people filing first-time claims for state unemployment insurance from 259K.

However, the result was not that bad, as there was an increase of only 1K from 259K to 260K. Moreover, the report added that the “advance seasonally adjusted insured unemployment rate was 1.6 percent for the week ending September 3, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 3 was 2,143,000, an increase of 1,000 from the previous week’s revised level“.

Overall, the US Dollar buyers were not impressed by the US Initial Jobless Claims data, and that’s why the USDJPY pair remains at a risk of more losses.

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