Key Points
- The US Dollar made a nice downside move and traded below the 112.50 support against the Japanese Yen.
- There is a major bearish trend line forming with resistance near 112.55 on the hourly chart of USDJPY.
- Recently in Japan, the Merchandise Trade Balance Total figure for Oct 2017 was released by the Ministry of Finance.
- The outcome was below the forecast of ¥330.0B as there was a trade surplus of ¥285.4B.
USDJPY Technical Analysis
The US Dollar started a downside move from the 113.80-114.00 resistance area against the Japanese Yen. The USDJPY pair traded below the 113.00 and 112.80 support levels to close below the 21 hourly simple moving average.
The pair traded as low as 111.91 and is currently correcting higher. It is trading near the 23.6% Fib retracement level of the last decline from the 113.20 high to 111.91 low. Moreover, there is a major bearish trend line forming with resistance near 112.55 on the hourly chart.
An intermediate resistance is near the 112.50 level and the 50% Fib retracement level of the last decline from the 113.20 high to 111.91 low.
Japan’s Merchandise Trade Balance Total
Recently in Japan, the Merchandise Trade Balance Total figure for Oct 2017 was released by the Ministry of Finance. The market was positioned for a trade surplus of ¥330.0B less than the last ¥670.2B.
The actual result was below the forecast of ¥330.0B as there was a trade surplus of ¥285.4B. The Imports of goods and services rose 18.9% in Oct 2017, less than the forecast of 20.2%. Moreover, the Exports of goods and services rose 14.0% in Oct 2017, less than the forecast of 15.8%.
Overall, the USDJPY pair is likely to struggle and it will most likely trade below the 112.00 support in the near term.
