USD/JPY Remains in Uptrend Above 109.4008 June, 2018 by Aayush Jindal in Market Analysis
- The US Dollar traded higher and moved above the 109.00 resistance against the Japanese Yen.
- There is a short-term ascending channel forming with support at 109.60 on the 4-hours chart of USD/JPY.
- Recently in the US, the Initial Jobless Claims for the week ending June 2, 2018 declined from the last revised from 223K to 222K.
- Today, Canada’s net employment change for May 2018 will be released, which is forecasted to post 17.5K.
USDJPY Technical Analysis
The US Dollar started a decent upside move from the 108.50 level against the Japanese Yen. The USD/JPY pair is now placed nicely above the 109.00 level with bullish signs.
During the recent upside move, the pair broke the 108.80 resistance zone to start an upside move. It cleared the 109.20 barrier and the 200 simple moving average (green, 4-hours) to move into a bullish zone.
There was also a break above the 50% fib retracement level of the last decline from the 111.39 high to 108.11 low. The pair traded close to the 110.40 resistance and is currently following a short-term ascending channel with support at 109.80 on the 4-hours chart.
As long as the pair is above the 109.40 and 109.20 support levels, it may continue to rise in the near term. On the upside, an immediate resistance is at 110.40, followed by 110.80 and 111.00.
Recently in the US, the Initial Jobless Claims for the week ending June 2, 2018 was released by the US Department of Labor. The market was looking for a rise from the last reading of 221K to 225K.
However, the actual result was a bit positive as there was a decline from the last revised reading of 223K to 222K. The US Dollar is currently correcting lower, but upsides in EUR/USD and GBP/USD could be limited in the near term.
Economic Releases to Watch Today
- Germany’s Industrial Production for April 2018 (MoM) – Forecast +0.3%, versus +1.0% previous.
- Germany’s Trade Balance for April 2018 – Forecast €21B, versus €22B previous.
- Canada’s net employment change May 2018 – Forecast 17.5K, versus -1.1K previous.
- Canada’s Unemployment Rate May 2018 – Forecast 5.8%, versus 5.8% previous.