- US Dollar after tumbling against the Japanese yen this past week found support today and managed to correct higher.
- Japanese Industrial Production released by the Ministry of Economy, Trade and Industry posted a massive decline, which ignited moves in the Yen pairs.
- USDJPY is currently forming a nice ascending channel on the hourly chart, which is acting as a support for the US Dollar buyers.
- More gains are likely in USDJPY if the US dollar buyers remain in action.
The USDJPY pair is on the rising streak and it looks set for more upsides if the bullish sentiment remains intact. There is an ascending channel on the hourly chart, which can be seen as a catalyst for the upside move.
The USDJPY pair is now well above the 100 hourly simple moving average, suggesting there is a lot of support levels on the way down if the pair corrects from here.
On the upside, 114.0-10 area could be seen as an initial resistance for the US Dollar buyers.
Japanese Industrial Production
Today, Japan saw a couple of major economic releases, including the Japanese Industrial Production, which was reported by the Ministry of Economy, Trade and Industry. The forecast was lined up for a decline in Dec 2015, compared with Nov 2015. However, the outcome was not as forecasted, as the Japanese Industrial Production fell by 1.7%.
When we look at the yearly change, the Japanese Industrial Production fell by 1.9% Dec 2015, compared with the same month a year ago. Overall, the report was disappointing, and calling for a downside move in the Japanese Yen.
There are real chance of the USDJPY pair moving higher as long as the pair stays above the 100 hourly MA.