Key Points
- The US Dollar struggled to break the 114.25 resistance against the Japanese Yen and moved down.
- There was a break below a major bullish trend line with support at 113.85 on the hourly chart of USDJPY.
- Recently in Japan, the Corporate Service Price Index (CSPI) for August 2017 was released by the Bank of Japan.
- The outcome was above the forecast of +0.8% as there was a rise in the index by 0.9% (YoY).
USDJPY Technical Analysis
The US Dollar was in a super uptrend and recently moved above the 114.00 handle against the Japanese Yen. The USDJPY pair traded as high as 114.24 where it faced sellers and later started a downside move back below 114.00.
During the downside move, there was a break below a major bullish trend line with support at 113.85 on the hourly chart and the 21 hourly simple moving average.
The pair is currently trading near another bullish trend line at 113.40, but remains at risk of more losses. Any correction towards 23.6% or 38.2% Fib retracement level of the last decline from the 114.24 high to 113.36 low might face sellers on the upside.
Japan’s Corporate Service Price Index
Recently in Japan, the Corporate Service Price Index (CSPI) for August 2017 was released by the Bank of Japan. The market was positioned for an increase in the index by 0.8% compared with the same month a year ago.
The actual result was above the forecast of +0.8% as there was a rise in the index by 0.9%. Looking at the Services Producer Price Index (All items excluding International transportation), the forecast was slated for a rise of 0.7%, but the actual was +0.8% from the previous year.
Overall, the USDJPY pair might correct lower in the near term and rallies would face sellers near 113.80.
