Key Points
- The US Dollar is following a bullish bias, and recently traded above 111.70 against the Japanese Yen.
- There is a monster bullish trend line with support at 111.70 forming on the hourly chart of USDJPY.
- Today in the US, the Richmond Fed Manufacturing Index for June 2017 will be released by Federal Reserve Bank of Richmond.
- The market is positioned for a substantial increase from the last reading of 1 to 4.
USDJPY Technical Analysis
The US Dollar recently gained bullish momentum and moved above the 111.50 resistance against the Japanese Yen. The USDJPY pair gained heavy bids, moved above the 111.70 swing high and following a bullish 21 hourly simple moving average.
The pair recently traded as high as 112.06 where it faced offers and started a downside move. It is currently below the 23.6% Fib retracement level of the last wave from the 111.11 low to 112.06 high.
On the downside, there is a monster bullish trend line with support at 111.70 forming on the hourly chart. The same 111.70 support also coincides with the previous resistance and the 38.2% Fib retracement level of the last wave from the 111.11 low to 112.06 high.
Italian Business Confidence
Today in the US, the Richmond Fed Manufacturing Index for June 2017 will be released by Federal Reserve Bank of Richmond. The market is positioned for a major increase from the last reading of 1 to 4.
If the outcome is positive and the Richmond Fed Manufacturing Index moves above 4, the US Dollar could gain further traction. On the other hand, if the Richmond Fed Manufacturing Index declines towards 0, there is chance of the greenback facing sellers in the short term.
Overall, the USDJPY pair remains supported above 111.70-60 and presenting a good short-term buying opportunity.
