Key Points
- The US Dollar declined this week against the Japanese yen, but can it recover moving ahead?
- There is a major bearish trend line formed on the hourly chart of the USDJPY pair, which is acting as a resistance.
- Today, the Japanese Money Supply M2+CD report was released by the Bank of Japan.
- The result was a bit on the lower side, as there was a rise of 3.3% in August 2016, less than the last revised reading of 3.4%.
USDJPY Technical Analysis
The US Dollar seems to be in a downtrend against the Japanese yen. The USDJPY pair recently tested the 101.25 support and started a recovery. However, the upside was protected by a major bearish trend line formed on the hourly chart.
The pair is again moving lower, but it could find support on the downside.
There is a bullish trend line waiting along with the 21 hourly simple moving average to provide support if the pair dips from here.
Japanese Money Supply M2+CD
Today during the Asian session, the Money Supply M2+CD, which measures all the JPY in circulation, encompassing notes and coins as well as money held in bank accounts was released by the Bank of Japan.
The outcome was mixed, as there was an increase of 3.3% in August 2016, less than the last revised reading of 3.4%. Later, the Tertiary Industry Index, which indicates the domestic service sector in Japan such as information and communication, electricity and others was released by the Ministry of Economy, Trade and Industry. The result was a bit on the lower side, as there was a rise of 0.3% in July 2016, less than the last revised reading of 0.7%.
Overall, the USDJPY pair may decline a few pips from the current levels, but it is likely to find support around the 21 hourly SMA.
