USDJPY – US Dollar To Extend Declines Vs Japanese Yen

Key Points

  • The US Dollar made a downside move below the 109.40 support area against the Japanese Yen.
  • There is a major bearish trend line with resistance at 109.10 forming on the hourly chart of USDJPY.
  • Recently in Japan, the All Industry Activity Index for June 2017 was released by the Ministry of Economy, Trade and Industry.
  • The outcome was below the forecast, as there was a rise of 0.4%, less than the forecast of 1%.

USDJPY Technical Analysis

The US Dollar after trading as high as 110.95 against the Japanese Yen found sellers. The USDJPY pair started moving down and traded below the 109.40 support and the 21 hourly simple moving average.

The pair after trading as low as 108.61 corrected higher but found sellers near 109.40. There is a major bearish trend line with resistance at 109.10 forming on the hourly chart of USDJPY, which is positioned with the 21 hourly simple moving average.

The pair is already moving down once again and trading below the 61.8% Fib retracement level of the last wave from the 108.61 high to 109.61 high. So, there are chances of it to decline back towards 108.60.

Japan’s All Industry Activity Index

Today in Japan, the All Industry Activity Index for June 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for an increase of around 1% in the index.

The actual result was below the forecast, as there was a rise of 0.4%, less than the forecast of 1%. However, it was better than the last revised reading of -0.8%. The Indices of Construction Industry Activity were down by around 1.7 to 119.1. On the other hand, the Indices of Industrial Production were up by 2.2 to 102.3.

Overall, the USDJPY pair might continue to decline and could challenge the 108.61 low in the near term.

Original Article