USDJPY Approaching Crucial Resistance Area21 January, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis, USDJPY
USDJPY Approaching Crucial Resistance Area
- US Dollar after trading as low as 115.92 against the US Dollar managed to correct higher.
- USDJPY is heading towards a major resistance area where sellers may emerge.
- Japanese Foreign bond investment released by Ministry of Finance posted a reading of ¥-358.3B, compared with the last reading of ¥323.1B.
- Today, the US Initial Jobless Claims will be released by the US Department of Labor, which is forecasted to register a decline from the last reading of 284K to 278K.
USDJPY Technical Analysis
The USDJPY pair recently dived closer to the 116.00 area where buyers just managed to defend losses. The pair is currently correcting higher, but may face a lot of barriers on the way up. There are a couple of bearish trend lines on the 4-hours chart, which acted as a hurdle for buyers on many occasions earlier.
If the pair trades closer to the highlighted trend line and resistance area, then it would be interesting to see how sellers react.
The 4-hours RSI is just touching the 50 level, and a break above it may encourage buyers in the short term to take the pair higher.
US Initial Jobless Claims
Today, the US Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The forecast is slated for a decline from the last reading of 284K to 278K. Moreover, the US Counting Jobless Claims is forecasted to decline from 2.263M to 2.248M. Let us see how the US Initial Jobless Claims comes out and whether there is a decline or not.
Japanese Foreign Bond Investment
Today, the Japanese 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. The outcome was not encouraging, as the Japanese Foreign bond investment came in at ¥-358.3B, compared with the last reading of ¥323.1B.
Overall, there was nothing much for the Japanese Yen buyers. Let us see what the NY session brings for us, and whether the USDJPY pair can break the highlighted trend line and resistance area or not.