USD/JPY – US Dollar Approaching Crucial Break Vs Japanese Yen

Key Highlights

  • The US Dollar remains in a downtrend against the Japanese Yen as long as below 111.40.
  • There is a major bearish trend line with resistance at 111.40-50 formed on the 4-hours chart of USD/JPY.
  • In Japan today, the Nikkei Manufacturing PMI for May 2017 posted a rise from 52 to 53.1.
  • In the US today, the ADP Employment Change will be released by the Automatic Data Processing, Inc. with forecast as 185K, up from the last 177K.

USD/JPY Technical Analysis

The US Dollar struggled lately against the Japanese Yen and moved below 111.50. The USD/JPY pair now faces a major challenge on the upside at 111.40 for a push towards 113.00.

USD/JPY Technical Analysis US Dollar Japanese Yen

After a sharp decline towards 110.00, the pair found support and started consolidating. The pair started a recovery and moved towards 112.12 where it faced offers, and traded lower.

At the moment, the pair is again struggling below 111.50. There is a major bearish trend line with resistance at 111.40-50 formed on the 4-hours chart.

The 100 simple moving average on the same chart is at 111.42, suggesting the importance of the 111.40-50 resistance. As long as there is no break and close above 111.50, USD/JPY remains at risk.

Nikkei Manufacturing PMI

Today in Japan, the Nikkei Manufacturing PMI for May 2017 was released. The market was poised for a decline from 52 to 51.8

Nikkei Manufacturing PMI May 2017

The actual result was better, as the Nikkei Manufacturing PMI posted a rise from 52 to 53.1. The report added that “May survey data signalled a further strong improvement in overall operating conditions faced by Taiwanese manufacturers. This was despite the pace of improvement weakening to a seven-month low, which was partly due to softer production growth“.

The Japanese Yen was not impressed much, and was seen trading a few pips lower, as USD/JPY moved towards 111.00.

Economic Releases to Watch Today

  • Swiss Gross Domestic Product for Q1 2017 (QoQ) – Forecast +0.4%, versus 0.1% previous.
  • Germany’s Manufacturing PMI for May 2017 – Forecast 59.4, versus 59.4 previous.
  • Euro Zone Manufacturing PMI May 2017 – Forecast 57, versus 57 previous.
  • France Manufacturing PMI May 2017 – Forecast 54, versus 54 previous.
  • Spain’s Manufacturing PMI May 2017 – Forecast 54.7, versus 54.5 previous.
  • US ISM Manufacturing PMI for May 2017 – Forecast 54.5, versus 54.8 previous.
  • US ADP Employment Change May 2017 – Forecast 185K, versus 177K previous.
  • US Initial Jobless Claims – Forecast 239K, versus 244K previous.


Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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