- The US Dollar recently traded above the 109.00 level vs the Japanese Yen, but failed to sustain the momentum.
- The USDJPY pair found sellers near the 200 hourly simple moving average, which is acting as a resistance.
- On the downside, the USD sellers are attempting to break a bullish trend line formed on the hourly chart of USDJPY.
- In Japan, the Prelim Machine Tool Orders released by the Japan Machine Tool Builders” Association posted a decline of 26.4% in April 2016.
There US dollar recently traded twice near 109.40-50 vs the Japanese yen, but it found sellers. The 200 hourly simple moving average played well in preventing an upside move in the pair, and increased bearish pressure.
The USDJPY pair is currently finding support near a bullish trend line formed on the hourly chart. A break below the trend line support area may call for more losses.
We can also keep a close eye on the 50 hourly SMA, which is below the trend line support and could act as a barrier for the USD sellers.
Japanese Machine Tool Orders
Today, the Japanese Prelim Machine Tool Orders, which shows movements in tool orders by manufacturers and also indicates business conditions and the overall economic condition in Japan was released by the Japan Machine Tool Builders” Association. The outcome was disappointing, as there was a decline of 26.4% in April 2016.
However, there was no major impact on the Japanese Yen, as the currency continued to trade in a range vs most major currencies.
One may consider selling with a break in the USDJPY pair, if sellers manage to clear the highlighted trend line and support area.