USDJPY – US Dollar At Make-Or-Break Levels Versus Japanese Yen30 September, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis, USDJPY
USDJPY – US Dollar At Make-Or-Break Levels Versus Japanese Yen
- The US dollar is making an attempt to move higher versus the Japanese yen, but faces a major hurdle.
- There is a monster descending channel pattern formed on the 4-hours chart of USDJPY, which is acting as a downside move catalyst.
- Today, the Japanese National Consumer Price Index released by the Statistics Bureau posted a decline of 0.5% in August 2016.
- The Tokyo Consumer Price Index was also reported, which came in at 0.5% in September 2016.
USDJPY Technical Analysis
The US Dollar recently gained pace and traded higher against the Japanese yen. However, the USDJPY pair faces a major resistance on the upside, which may prevent any major gains.
As highlighted, there is a monster descending channel pattern formed on the 4-hours char. It is one of the main reasons why it won’t be easy for the US Dollar buyers to take the pair higher.
The pair is also below the 100 and 200 simple moving averages on the same chart, which are also acting as a hurdle for the US Dollar bulls. In short, the USDJPY pair may remain under pressure for some time.
Japanese National Consumer Price Index
Today during the Asian session, Japan saw a couple of important economic releases. The Japanese National Consumer Price Index, which is a measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services was released by the Statistics Bureau.
The forecast was slated for a decline of 0.3% in august 2016, compared with the same month a year ago. However, the outcome was disappointing, as there was a decline of 0.5%.
The National Consumer Price Index ex-fresh food was forecasted to register a decline of 0.4% in august 2016, compared with the same month a year ago. However, there was a decline of 0.5%.
The Tokyo Consumer Price Index was also reported. It came in at -0.5% in Sep 2016. Overall, the report had nothing much for the Japanese yen buyers.
US Personal Income
Today, the US Personal Income, which measures the total income received by individuals, from all sources including wages and salaries, interest and others will be released by the Bureau of Economic Analysis, Department of Commerce.
The market is expecting an increase of 0.2% in August 2016, compared with the previous month in which there was a rise of 0.4%. If the actual result fails to impress, the US Dollar may face sellers in the short term.