Key Points
- The US Dollar popped higher versus the Japanese yen and traded close to the 101.80 level.
- The USDJPY pair is currently correcting lower, and may trade towards a bullish trend line formed on the hourly chart.
- Today in Japan, the Retail Trade was released by the Ministry of Economy, Trade and Industry.
- The result was disappointing, as there was a decline of 2.1% in August 2016, compared with August 2015.
USDJPY Technical Analysis
The US Dollar moved higher recently against the Japanese yen and traded as high as 101.78 and currently correcting lower. The USDJPY pair may test the 23.6% Fib retracement level of the last wave from the 100.11 low to 101.78 high where buyers might appear.
However, the most important support is on the downside near a bullish trend line formed on the hourly chart.
There is one more trend line on the downside, which is coinciding with the 21 hourly simple moving average.
Japanese Retail Trade
Today in Japan, the Retail Trade, which captures the aggregate sales made through a business location (usually a store) in which the principal activity is the sale of merchandise and related services was released by the Ministry of Economy, Trade and Industry.
The market was expecting a minor decline in August 2016, compared with the same month a year ago. However, the result was disappointing, as the decline was on the higher side (2.1%). The Japanese yen traded lower after the data. When we have a look at the Large Retailers’ Sales, there was a decline of 3.6%. It was almost double of what the market was expecting in August 2016. The last reading was much better, as there was a rise of 0.6% (revised).
Overall, the market may continue to favor the US Dollar, and hence more gains are possible in USDJPY.
