Key Points
- The US Dollar made an upside move and traded above the 112.70 level against the Japanese Yen.
- There is a key bullish trend line forming with support at 112.90 on the hourly chart of USDJPY.
- Recently in the US, the Pending Home Sales Change for August 2017 was released by the National Association of Realtors.
- The outcome was below the forecast of -0.5%, as there was a decline of 2.6% in sales.
USDJPY Technical Analysis
The US Dollar remains in an uptrend and recently moved above the 112.50 and 112.70 resistance levels against the Japanese Yen. The USDJPY pair even traded above 113.00 and formed a high as 113.26 before starting a correction.
The pair corrected below the 23.6% Fib retracement level of the last wave from the 111.50 low to 113.26 high. However, the downside correction found support near 112.40 and the 50% Fib retracement level of the last wave from the 111.50 low to 113.26 high.
Moreover, there is a key bullish trend line forming with support at 112.90 on the hourly chart of USDJPY, which might continue to act as a buy zone in the short term.
US Pending Home Sales
Recently in the US, the Pending Home Sales Change for August 2017 was released by the National Association of Realtors. The market was positioned for a decline of 0.5% compared with the previous month.
The actual result was below the forecast of -0.5%, as there was a decline of 2.6% in sales. It was also a lot lower compared with last decrease of 0.8%. The report added that:
The Pending Home Sales Index retreated 2.6 percent to 106.3 in August from 109.1 in July. The index is now at its lowest reading since January 2016 (106.1), is 2.6 percent below a year ago, and has fallen on an annual basis in four of the past five months.
However, there was no major impact on USDJPY and the pair is likely to move past 113.25-30 in the near term.
