USDJPY – US Dollar Back in Uptrend Vs Japanese Yen?

Key Points

  • The US Dollar recovered sharply from the 108.35 low against the Japanese Yen.
  • There was a break above a bearish trend line with resistance at 109.10 on the hourly chart of USDJPY.
  • Today in Japan, the Retail Trade figure for July 2017 was released by the Ministry of Economy, Trade and Industry.
  • The outcome was above the forecast of +0.3%, as there was a rise in the Retail Trade by 1.1% (MoM).

USDJPY Technical Analysis

The US Dollar after trading towards the 108.50-40 levels against the Japanese Yen found support. The USDJPY pair recovered well and broke the 109.00 handle and the 21 hourly simple moving average to register good gains.

During the upside, the pair broke a bearish trend line with resistance at 109.10 on the hourly chart. The pair tested the 110.00 handle and found offers. It is currently correcting lower with an initial support around the 23.6% Fib retracement level of the last wave from the 108.35 low to 110.01 high.

On the downside, there is a crucial support near 109.40, positioned with the 38.2% Fib retracement level of the last wave from the 108.35 low to 110.01 high.

Japanese Retail Trade

Today in Japan, the Retail Trade figure for July 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for an increase of 0.3% in the Retail Trade compared with the previous month.

The actual result was above the forecast of +0.3%, as there was a rise in the Retail Trade by 1.1%. In terms of the yearly change, the market was looking for a rise of 1.1% compared with the same month a year ago. Again, the result was positive, as there was a rise of 1.9%. The last reading was revised up from 2.1% to 2.2%.

Overall, the USDJPY pair may correct a few pips from the current levels, but remain supported near 109.50-40.

Original Article