USDJPY – Can US Dollar Retain Bullish Bias Versus Yen?

July 28, 2016

USDJPY – Can US Dollar Retain Bullish Bias Versus Yen?

This article is originally referred from TitanFX Market Analysis

KEY HIGHLIGHTS

  • The US dollar managed to gain traction this week against the Japanese yen, but can the USDJPY pair continue to trade higher?
  • There was a major bullish trend line break noted on the 4-hours chart of the USDJPY pair.
  • In Japan, the Securities investment, released by Ministry of Finance posted a reading of ¥679.3B.
  • In the US today, the Initial Jobless Claims will be released by the US Department of Labor, which is forecasted to increase from 253K to 260K.

USDJPY TECHNICAL ANALYSIS

The US Dollar is in an uptrend against the Japanese yen if we have a look at a higher time frame chart. However, in the short term, there is a chance of a minor downside reaction in the USDJPY pair.

USDJPY Can US Dollar Retain Bullish Bias Versus Yen

There was a bullish trend line formed on the 4-hours chart, which was recently broken by the bears. The pair moved down, but found support around the 100 simple moving average.

The pair bounced, and then found offers near the broken trend line, which is acting as a resistance area. The pair may move down once again towards the 100 SMA where the bulls must defend the downside in order to maintain the bullish trend.

JAPANESE SECURITIES INVESTMENT

Today during the Asian session, the Securities investment, which referrers to bonds issued in a domestic market by a foreign entity in the domestic market’s currency was released by Ministry of Finance. It came in at ¥679.3B. Moreover, the Foreign investment in Japan stocks came in at ¥-271.5B.

The Japanese yen was seen trading higher during the Asian session and may gain traction moving ahead.

US INITIAL JOBLESS CLAIMS

Today in the US, Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor.

The forecast is slated for a rise in claims from 253K to 260K. Moreover, the Counting Jobless Claims are also forecasted to rise this time. Let us wait and see whether there is a rise or a decline in claims. A bad miss may push the greenback on the back foot in the short term. Furthermore, the Goods Trade Balance report will also be released by the US Bureau of Economic Analysis and the U.S. Census Bureau.

So, there are many events lined up later today during the London and NY session, which we can monitor and trade accordingly.

Original Source: TitanFX Market Analysis

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