USD/JPY Eyes Upside Break Above 110.0029 November, 2019 by Aayush Jindal in Market Analysis
- USD/JPY is trading in a bullish zone above 109.00, with positive signs on the daily chart.
- A connecting bullish trend line is forming with support near 108.90 on the daily chart.
- Japan’s Retail Trade declined 14.4% in Oct 2019 (MoM).
- The Euro Zone CPI could increase 0.9% in Nov 2019 (YoY) (Prelim).
USD/JPY Technical Analysis
This month, the US Dollar mostly traded in a range above the 108.20 support against the Japanese Yen. USD/JPY is currently showing positive signs above 109.00 and it could continue to rise.
Looking at the daily chart, the pair settled nicely above many hurdles such as 108.80, 109.00, the 100 simple moving average (red), and the 200 simple moving average (green).
The recent rise was such that the pair even surpassed the last swing high of 109.30. It has opened the doors for more gains above the 109.80 and 110.00 resistance levels.
The next key resistance could be 110.45. It is near the 1.236 Fib extension level of the downward move from the 109.31 high to 104.44 low (26th August 2019 low).
On the downside, there are many supports forming near 109.00 and 108.80. Besides, there is a connecting bullish trend line is forming with support near 108.90 on the daily chart.
If there is a downside break below the trend line, the pair could start a major downside correction below the 108.80 support. The next key support is near the 108.20 level, below which there is a risk of an extended decline towards the 107.80 support or the 100-day SMA.
Upcoming Economic Releases
- Germany’s Unemployment Change for Nov 2019 – Forecast 5K, versus 6K previous.
- Germany’s Unemployment Rate for Nov 2019 – Forecast 5.0%, versus 5.0% previous.
- Euro Zone CPI for Nov 2019 (YoY, Preliminary) – Forecast +0.9%, versus +0.7% previous.
- Canadian GDP for Q3 2019 (Annualized) – Forecast +1.2%, versus 3.7% previous.