Key Points
- US Dollar climbed higher against the Japanese Yen, and looks set for more gains.
- There was a bearish trend line formed on the hourly chart of USDJPY, which was broken to clear the way for more upsides.
- Japanese Industrial Production released by the Ministry of Economy, Trade and Industry posted a decline of 5.2% in Feb 2016.
- In terms of the yearly change, there was a decline of 1.2% in the Japanese Industrial Production.
Technical Analysis
The US Dollar climbed higher recently and tested the 109.70 area against the Japanese Yen where it faced offers. During the upside move, the USDJPY pair broke a bearish trend line formed on the hourly chart. The pair is currently consolidating near 109.60 level, which may push USDJPY a few pips down moving ahead.
If the USDJPY pair moves down from the current levels, then the broken trend line and the 50 hourly simple moving average may provide support.
On the upside, a break above the 109.70 level could spike more gains in the short term. So, buying dips might be a good deal.
Japanese Industrial Production
Earlier today during the Asian session, the Industrial Production, which measures outputs of the Japanese factories and mines was released by the Ministry of Economy, Trade and Industry. The outcome was disappointing, as there was a decline of 5.2% in the Industrial Production in Feb 2016, compared with the previous month.
Moreover, when we consider the yearly change, then the Japanese Industrial Production posted a decline of 1.2% in Feb 2016, compared with the same month a year ago.
The result was not impressive, but there is a chance of a minor dip in USDJPY, which can be seen as a buying opportunity.
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