Key Points
- The US Dollar looks like struggling against the Japanese yen, and may trade down in the near term.
- Currently, the USDJPY pair is trading near a bullish trend line on the hourly chart, which may play a major role moving ahead.
- Earlier today, the Japanese labor cash earnings was released by the Ministry of Health, Labour and Welfare.
- The outcome was positive, as there was a rise of 1.3% in June 2016, more than the forecast.
Technical Analysis
The US Dollar was seen struggling versus the Japanese yen recently, as it traded down towards 100.70 before starting a correction. The pair corrected towards 101.70 where it found sellers and presently moving down once again.
There is a bullish trend line on the hourly chart formed on the hourly chart of the USDJPY pair, which is currently providing support to the pair.
We need to be careful moving ahead, as a break down may take the pair back towards the last swing low.
Japanese Labor Cash Earnings
Earlier today during the Asian session, the Japanese labor cash earnings, which shows the average income, before taxes, per regular employee. It includes overtime pay and bonuses was released by the Ministry of Health, Labour and Welfare.
The market was expecting a rise of 0.4% in June 2016, compared with the same month a year ago. The outcome was positive, as there was an increase of 1.3%. The result helped the Japanese yen to gain traction during the Asian session. Moreover, the Coincident Index was released by the Cabinet Office. It posted a rise from the last reading of 109.2 (revised) to 110.5 in June 2016.
If the US Dollar sellers manage to clear the trend line support, then we may witness more losses in USDJPY moving ahead.
