Key Points
- The US Dollar traded higher and broke the 112.00 resistance against the Japanese yen.
- The USDJPY pair remained supported on the downside near trend lines at 111.80 and 111.50 on the hourly chart.
- The Tokyo Consumer Price Index for March 2017 (YoY) was released by the Statistics Bureau.
- The result was a bit lower, as it posted a decline of 0.4%, more than the last decline of 0.3%.
USDJPY Technical Analysis
The US Dollar made a nice upside move and traded as high as 112.17 against the Japanese yen, where it is finding offers. The USDJPY pair is moving lower, but likely to find support on the downside near trend lines at 111.80 and 111.50 on the hourly chart.
Moreover, the 38.2% Fib retracement level of the wave from the 110.97 low to 112.17 high might also act as a support below the first trend line at 111.70.
So, if the pair moves down, there are many support levels waiting on the downside above 111.40. One may consider buying as long as the pair is above the 111.40 support trend line.
Tokyo Consumer Price Index
Today in Japan, the Tokyo Consumer Price Index for March 2017 (YoY) was released by the Statistics Bureau. The market was expecting the Consumer Price Index to decrease by around 0.3% in March 2017, compared with the same month a year ago.
The outcome was a bit lower, as it posted a decline of 0.4%, more than the last decline of 0.3%. Similarly, the Tokyo Consumer Price Index ex Fresh Food posted a decline of 0.4%, more than the last decline of 0.3%. The forecast for the Tokyo Consumer Price Index ex Fresh Food was -0.2%.
Overall, the Japanese yen has no reason to gain traction, which is why USDJPY might continue to gain bids above 111.80 in the short term.
