USDJPY – US Dollar Target Additional Gains Vs Japanese Yen08 March, 2017 by Aayush Jindal in Market Analysis
- The US Dollar stayed above the 113.50 support against the Japanese yen, and look to extend gains.
- The USDJPY pair needs to clear a bearish trend line with resistance at 114.50 on the 4-hours chart to extend gains.
- Today in Japan, the Gross Domestic Product for Q1 2017 was released by the Cabinet Office, which registered a growth rate of 0.3%, vs the 0.4% forecast.
- The Japan’s Current Account for Jan 2017 released by the Ministry of Finance posted a trade surplus of ¥65.5B, vs the ¥239.0B forecast.
USDJPY Technical Analysis
The US Dollar recovered well this past week against the Japanese yen to trade above 113.50. The USDJPY pair is now positioned well and looking to extend gains.
During the last upside move, the pair broke a bearish trend line at 113.30 on the 4-hours chart. Moreover, it settled above the 200 and 100 simple moving average (H4), forming a support near 113.40.
At the moment, the pair is struggling to clear a bearish trend line with resistance at 114.50. So, there is a chance that the pair might dip towards 113.50 or 113.40 before making an upside attempt in the near term.
Japanese Gross Domestic Product
Today, there were a couple of important releases in Japan, like the GDP and Current Account figure. The Gross Domestic Product for Q1 2017 was released by the Cabinet Office, and was forecasted to increase by 0.4%.
The result was a bit on the lower side, as there was an increase of 0.3% in the GDP in Japan in Q1 2017. Moreover, the Current Account for Jan 2017 was released by the Ministry of Finance. The market was looking for a trade surplus of ¥239.0B. Again, the real outcome was on the lower side, as the trade surplus was ¥65.5B.
These results failed to help the Japanese yen, which means the USDJPY pair may remain supported on the downside near 113.40.
US ADP Employment Change
Today, the US will witness the release of the ADP Employment Change for Feb 2017 by the Automatic Data Processing, Inc. The forecast is slated for a change of 190K, a bit lower than the last 246K. If the actual outcome exceeds the forecast, the USDJPY pair might move higher towards 114.50 in the near term.