Key Points
- The US Dollar surged higher today and traded above 115.00 against the Japanese yen.
- There are two bullish trend lines with support at 115.15 and 114.80 formed on the hourly chart of USDJPY.
- Today, the Japanese Business Survey Index (BSI) Large Manufacturing for Q1 2017 released by the Ministry of Finance posted a decline from 7.5 to 1.1.
- Later today, the US NFP figure for Feb 2017 will be published. Forecast is 190K and may impact the USD to a great extent.
USDJPY Technical Analysis
The US Dollar maintained a bullish bias against the Japanese yen, and moved above the 114.80 and 115.00 resistance levels. The USDJPY is already above the 1.236 extension of the last drop from the 114.79 high to 113.56 low.
So, there is a chance of it moving towards the 1.618 extension of the last drop from the 114.79 high to 113.56 low at 115.53 or even 115.60.
On the downside, the pair remains well supported near two bullish trend lines at 115.15 and 114.80.
Japanese Business Survey Index (BSI) Large Manufacturing
Today in Japan, the Business Survey Index (BSI) Large Manufacturing for Q1 2017 was released by the Ministry of Finance. The market was expecting the Business Survey Index to rise from 7.5 to 8.4 in Q1 2017, compared with the previous quarter.
The outcome was below the forecast, as the Business Survey Index posted a decline from 7.5 to 1.1 in Q1 2017. In the US recently, the Import Price Index for Feb 2017 was released by the US Department of Labor. The market was expecting a rise of around 0.1%. The result was better, as there was an increase of 0.2% in Feb 2017, compared with the previous month.
Overall, the US Dollar may continue to extend gains, and USDJPY could head towards 115.60 or 115.80 in the near term.
