Key Points
- The US Dollar gained bids recently and moved above 122.50 against the Japanese Yen.
- The USDJPY pair is currently trading inside a breakout pattern with resistance at 122.90 on the hourly chart.
- In Japan, the Consumer Confidence Index for April 2017 was released by the Cabinet Office.
- The result was a bit lower than the forecast, as the Consumer Confidence Index fell from the last reading of 43.9 to 43.2.
USDJPY Technical Analysis
The US Dollar was seen struggling to clear the 113.00 resistance area against the Japanese Yen. It resulted in a minor correction, and the pair traded as low as 122.09 form where it started moving higher once again.
The pair is now once again near the same resistance, and formed a breakout pattern with resistance at 122.90 on the hourly chart.
The pair may dip a few pips towards the 23.6% Fib retracement level of the last wave from the 112.09 low to 112.92. However, it likely to find support near the 21 simple moving average at 112.60 for another upside wave.
Japanese Consumer Confidence Index
Recently Japan, the Consumer Confidence Index for April 2017 was released by the Cabinet Office. The forecast was lined up for the Consumer Confidence Index to increase from the last reading of 43.9 in April 2017.
The result was a bit lower than the forecast, as the Consumer Confidence Index fell from the last reading of 43.9 to 43.2. The report added that the “categories of the Consumer Perception Indices (seasonally adjusted series), which are comprised of the Consumer Confidence Index in April are: Overall livelihood: 1.5 (down 1.2 from the previous month), Income growth: 41.4 (down 0.8 from the previous month), Employment: 47.7 (up 0.8 from the previous month), Willingness to buy durable goods: 42.2 (down 1.6 from the previous month)”.
Overall, the USDJPY pair is likely to break higher and move past the 112.90 resistance for more gains.
