USDJPY – Can US Dollar Continue Uptrend Vs Japanese Yen?12 October, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis, USDJPY
USDJPY – Can US Dollar Continue Uptrend Vs Japanese Yen?
- The US Dollar traded above the 103.00 handle against the Japanese yen, and broke a major resistance.
- There was a crucial bearish trend line formed on the daily chart of the USDJPY pair, which was cleared by the Dollar bulls.
- Today in Japan, the Machinery New orders, released by the Cabinet Office posted a decline of 2.2% in August 2016, compared with the forecast of a 5.5% decrease.
- Today in the US, the Federal Open Market Committee meeting minutes will be published, which may impact the greenback.
USDJPY Technical Analysis
The US Dollar surged higher vs the Japanese yen to register a daily close above 102.00. This puts the USDJPY pair on a path for more upsides in the near term.
There is a major technical point to note from the daily chart of the USDJPY pair. There was a bearish trend line, connecting all the recent swing highs. It was broken during the recent upside, which is a signal that the US Dollar buyers are here to stay.
Currently, the pair is finding sellers near the 100-day simple moving average. A break above it could take the pair towards the 1.236 extension of the last drop from the 104.32 high to 100.12 low.
Japanese Machinery New Orders
Today in Japan, the Machinery New orders, which points the total value of machinery orders placed at major manufacturers in Japan was released by the Cabinet Office. The market was aligned for a decrease of 5.5% in August 2016, compared with the previous month. However, the report was a bit better, as there was a decline of 2.2%.
In terms of the yearly change, there was an increase of 11.6% in the orders in August 2016, compared with the same month a year ago, which was again better than the forecast.
FOMC Meeting Minutes
Today in the US, there are a few low-risk events lined up, like the JOLTS Job Openings by the US Bureau of Labor Statistics. However, the market will be waiting for the Federal Open Market Committee meeting minutes. Most investors want to get an idea about the stance of monetary policy.
So, it may be analyzed carefully, and the market might react based on the meeting minutes.