Key Points
- The US Dollar traded sharply higher against the Japanese yen this week to trade near 110.00.
- The USDJPY pair found sellers near 109.70-80, traded lower and broke a bullish trend line formed on the hourly chart.
- In Japan today, the foreign investment in Japan stocks was released by Ministry of Finance.
- The outcome was above the forecast, and better than the last reading, as it came in at ¥545.8B.
USDJPY Technical Analysis
The US Dollar made a nice move during the past few days, and broke many resistances including 108 and 108.50. The USDJPY pair traded as high as 109.76 where it found sellers, and started a downside move.
During the downside move, the pair broke a bullish trend line formed on the hourly chart, and the 23.6% Fib retracement level of the last leg from the 108.20 low to 109.76 high.
The pair traded as low as 108.56, and currently attempting to correct higher. However, there is a bearish trend line formed on the same chart, acting as a resistance for the pair and preventing gains. It looks like it holds a lot of importance in the short term.
Foreign Investment in Japan Stocks
Today, there were a few minor releases in Japan like the foreign investment in Japan stocks was released by Ministry of Finance. The market was not expecting any major improvement in the bonds issued in a domestic market by a foreign entity in the domestic market’s currency.
However, the result was better than the forecast, and the last reading, as the foreign investment in Japan stocks came in at ¥545.8B. Moreover, the foreign bond investments figure was also released, which came in at ¥466.2B. Moreover, the last reading was revised from ¥604.9B to ¥605.3B.
Overall, it looks like there is a chance of the Japanese yen correcting against the USD as long as the trend line resistance holds.
