Key Points
- The US Dollar recently corrected lower after trading as high as 105.53 against the Japanese yen.
- There is an important support trend line formed on the hourly chart of USDJPY, acting as a barrier at 104.50.
- Today, the Japanese Industrial Production was released by the Ministry of Economy, Trade and Industry.
- The outcome was disappointing, as there was no change in Sep 2016 (preliminary), compared with the previous month.
USDJPY Technical Analysis
The US Dollar recently traded as high as 105.53 against the Japanese yen where it found offers and started trading lower. The USDJPY pair traded down, and tested an important support trend line formed on the hourly chart at 104.50.
The pair is once again moving higher, but facing sellers near the 21 hourly simple moving average.
So, there is a chance of another dip in the USDJPY pair, which may find buyers around the highlighted trend line and support. One may consider buying as long as the pair is above it.
Japanese Industrial Production
Today in Japan, the Japanese Industrial Production, which measures outputs of the Japanese factories and mines was released by the Ministry of Economy, Trade and Industry.
The last reading was an increase of 1.3%, so the market was expecting a minor rise this time as well. However, the result was lower, as there was no change in Sep 2016 (preliminary), compared with the previous month. In terms of the yearly change, the Japanese Industrial Production posted a rise of 0.9% in Sep 2016 (preliminary), compared with the same month a year ago. This was again on the disappointing side, as last increase was 4.5%.
Overall, the US Dollar remains supported on the downside as long as the USDJPY pair is above the 104.50 level.
