Key Points
- The US Dollar rocketed higher against the Japanese yen recently and moved above 113.00.
- There is a short-term bullish trend line formed on the hourly chart of USDJPY, likely to act as a support at 112.80.
- Today during the Asian session, the Japanese Coincident Index was released by the Cabinet Office.
- The outcome was better than the forecast, as there was an increase from the last revised reading of 111.9 to 112.7 in Sep 2016.
USDJPY Technical Analysis
The US Dollar enjoyed nasty gains against the Japanese yen during the past few days and moved above the 112.00 and 113.00 resistance levels. The USDJPY pair recently traded as high as 113.53, and currently correcting lower.
On the downside, there is a short-term bullish trend line formed on the hourly chart, which may act as a support. Moreover, the 50% Fib retracement level of the last leg from the 112.37 low to 113.53 high at 112.95 might also provide support.
Overall, one may continue to look for buying opportunities in USDJPY, as the pair remains in an uptrend.
Japanese Coincident Index
Today during the Asian session, the Japanese Coincident Index, which is a single summary statistic that tracks the current state of the Japanese economy was released by the Cabinet Office.
The market was not expecting any increase in the index in Sep 2016. However, the result was positive, as there was an increase from the last revised reading of 111.9 to 112.7. On the other hand, the Leading Economic Index, which is an economic indicator that consists of 12 indexes such as account inventory ratios, machinery orders, stock prices and other leading economic indicators posted a minor decline. There was a decrease from the last revised reading of 100.9 to 100.3 in Sep 2016.
The Japanese yen failed to recover after the release, and it looks like USDJPY may rise towards 114.00.
