Key Points
- The US Dollar traded higher during the Asian session against the Japanese yen to move above 114.30.
- The USDJPY pair remains supported neat 114.35-20 levels, and there is a bullish trend line forming on the hourly chart.
- Today in Japan, the Business Survey Index (BSI) Large Manufacturing was released by the Ministry of Finance.
- The result was positive, as there was a rise from the last reading of 2.9 to 7.5 in Q4 2016.
USDJPY Technical Analysis
The US Dollar managed to trade higher during the Asian session against the Japanese yen, and broke the 114.30 resistance area. The USDJPY traded as high as 114.55 before finding offers and starting a correction.
The pair is trading lower at the moment, and finding bids near the 114.35-30 support area. Moreover, there is also a bullish trend line forming on the hourly chart, which may act as a support if the pair moves down.
So, it looks like the pair may trade higher one more time, and at least retest the last swing high of 114.55.
Business Survey Index (BSI) Large Manufacturing
Today in Japan, the Business Survey Index (BSI) Large Manufacturing, which studies business authorities’ assessments of and forecasts for the economy to seize information for keeping track of economic trends was released by the Ministry of Finance.
The market was not expecting any major increase from the last reading of 2.9 in Q4 2016, compared with the previous quarter. The result was positive, as there was a rise from the last reading of 2.9 to 7.5. Moreover, the Money Supply M2+CD released by the Bank of Japan also posted a better than expected increase of 4% in Nov 2016, compared with Nov 2015.
The USDJPY moved a few pips down after the release, but finding support near the 114.35-30 levels.
