Key Points
- The US Dollar after declining towards 110.70-80 against the Japanese Yen formed a support.
- The USDJPY pair is currently moving higher and already cleared a bearish trend line at 111.00 on the hourly chart.
- Today in Japan, the Industrial Production figure for May 2017 (Preliminary) was released by the Ministry of Economy, Trade and Industry.
- The outcome was below the forecast, as there was a rise of 4% (MoM), less than the forecast of 4.3%.
USDJPY Technical Analysis
The US Dollar was in a solid downtrend until it recently found support at 110.70-80 against the Japanese Yen. The USDJPY pair formed a base and then started an upside move above 111.80, and traded above the 23.6% Fib retracement level of the last decline from the 111.50 high to 110.70 low.
The pair also broke a bearish trend line at 111.00 on the hourly chart. At the moment it is struggling to settle above the 111.20 resistance and the 21 simple moving average.
The pair needs to close above the second bearish trend line at 111.20 and the 61.8% Fib retracement level of the last decline from the 111.50 high to 110.70 low in order to gain momentum.
Japanese Industrial Production
Recently in Japan, the Industrial Production figure for May 2017 (Preliminary) was released by the Ministry of Economy, Trade and Industry. The market was positioned for the Industrial Production to increase by 4.3% in May 2017, compared with the previous month.
The result was below the forecast, as there was a rise of 4%, but it was far better than the last -1.9%. In terms of the yearly change, there was a rise of 5.7% in the Industrial Production, which was a lot more than the last 3.5%.
Overall, the USDJPY pair may dip a few pips towards 111.00, but likely to gain bids for a break above 111.20 in the near term.
