USDJPY – Japanese Yen Continued To Enjoy Gains Vs USD07 July, 2016 by Aayush Jindal in Market Analysis, Technical Analysis, USDJPY
USDJPY – Japanese Yen Continued To Enjoy Gains Vs USD
- The US Dollar traded this week with a bearish bias versus the Japanese yen, and traded below a major support area of 101.80.
- The USDJPY pair even broke a support trend line formed on the 4-hours chart to open the doors for more losses.
- Earlier today, the foreign investment in Japan stocks data was released by Ministry of Finance, which came posted a reading of ¥113.9B.
- Moreover, the Japanese Foreign bond investment came in at ¥428.2B.
USDJPY Technical Analysis
The US Dollar after a recovery towards the 103.00-40 levels against the Japanese yen found sellers and started to move down once again. The USDJPY pair even broke a major support area of 101.80, which may now act as a resistance.
Moreover, the pair also broke a support trend line of a channel pattern formed on the 4-hours chart, which ignited sharp loses.
No doubt, the USDJPY pair is under a bearish pressure, and if sellers up the momentum, there is even a chance of it moving below the all-important 100.00 level in the short term.
Japanese Foreign Bond Investment
Earlier today, there were a couple of low risk releases lined up like the foreign bond investment and foreign investment in Japan stocks. The foreign bond 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 ¥428.2B, compared with the last reading of ¥394.2B.
Moreover, the foreign investment in Japan stocks came in at ¥113.9B, compared with the last reading of ¥-184.2B.
Later today, the Leading Economic Index will be released by the Cabinet Office, which is forecasted to increase from the last reading of 100 to 100.1 in May 2016.
US ADP Employment Change
Today in the US, there is a major release, as the Employment Change, which is a measure of the change in the number of employed people will be released by the Automatic Data Processing, Inc. The market is expecting a reading of 159K in June 2016, less than the last 173K.
Any better than forecast reading may help the US Dollar in recovery against the Japanese yen moving ahead.