USDJPY – Yen To Gain Further?01 March, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis, USDJPY
USDJPY – Yen To Gain Further?
- US Dollar struggled this week against the Japanese Yen, and it looks like latter one is set for more gains.
- The USDJPY pair broke a support trend line formed on the hourly chart to ignite a downside move.
- Japanese Unemployment Rate which comes from the Ministry of Health, Labour and welfare came in at 3.2% in Jan 2016.
- Japanese Jobs/applicants ratio dividing monthly active job openings by monthly active applications posted a reading of 1.28 in Jan 2016.
USDJPY Technical Analysis
The US Dollar after trading close to the 114.00 area against the Japanese Yen found sellers and started to move down. There was a support trend line formed on the hourly chart, which was broken to open the doors for more losses in the USDJPY pair.
The USDJPY pair is now settled below the 100 and 200 hourly simple moving averages, which is a bearish sign for the bulls. A break below the 112.00 support area may call for a move towards the 111.60 levels.
On the upside, if the pair attempts to correct higher, then an initial resistance is around the 100 hourly SMA, followed by the broken trend line as it is coinciding with the 200 hourly SMA.
US ISM Manufacturing Index
Today, the US Institute for Supply Management (ISM) Manufacturing Index that shows business conditions in the US manufacturing sector will be released. The forecast is slated for a rise from 48.2 to 48.8. Any disappointing reading may weigh on the US dollar moving ahead.
Japanese Unemployment Rate
Today, the Japanese Unemployment Rate, which is a measure of the percentage of unemployed in Japan which comes from the Ministry of Health, Labour and welfare was published by the Japan Statistics Bureau. The market was expecting the Japanese Unemployment Rate post a rate of 3.3% in Jan 2016. However, the outcome was above the forecast, as the unemployment rate dipped to 3.2%.
Moreover, the Japanese Jobs/applicants ratio dividing monthly active job openings by monthly active applications posted a reading of 1.28 in Jan 2016.
Overall, there were a lot of positives for the Japanese Yen, and if all goes well, there are chances of it gaining traction in the short term.