Key Points
- The US Dollar is trading below the 112.80-113.00 resistance zone against the Japanese Yen.
- There is a short-term bearish trend line forming with resistance at 112.55 on the hourly chart of USDJPY.
- Today in Japan, the Bank lending report for Sep 2017 was released by Bank of Japan.
- The outcome was above the forecast of 2.6% as there was a rise of 3% the lending (YoY).
USDJPY Technical Analysis
The US Dollar failed to gain momentum this week and moved below the 112.80 support zone against the Japanese Yen. The USDJPY pair traded below 112.20 and the 21 hourly simple moving average before recovering above the 112.40 level.
However, the upside move was protected by a short-term bearish trend line forming with resistance at 112.55 on the hourly chart. The pair once again moving lower towards the 50% Fib retracement level of the last wave from the 112.12 low to 112.60 high.
The downside move might find support at 112.20. It seems like the pair might trade in a range above 112.20-10 before making the next move (probably higher).
Japan’s Bank lending
Recently in Japan, the Bank lending report for Sep 2017 was released by Bank of Japan. The market was positioned for the Bank lending to increase by 2.6% compared with the same month a year ago.
The actual result was above the forecast of 2.6% as there was a rise of 3% the lending. Moreover, the Domestic Corporate Goods Price Index for Sep 2017 was forecasted to increase by 3% compared with the same month a year ago. The result was in line with the forecast of 3%, and the monthly change was +0.2%.
Overall, the USDJPY pair might dip a few pips, but it is likely to gain bids for an upside move towards 112.80.
