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‘The US dollar traded lower against the Japanese yen, but found support around an important area, which means the USDJPY pair might climb higher one more time. There were some releases in Japan during the Asian session, which had no impact on the yen pairs. Most of them were seen trading in a range and some of them were seen gaining traction. There are some important releases lined up during the NY session today, including the Consumer Price Index (CPI) and CPI Ex Food & Energy, which will be released by the US Department of Labor Statistics. The inflation report holds a lot of importance for the US dollar and might impact USDJPY to a great extent.
There was a crucial bearish trend line formed on the hourly chart of the USDJPY pair, which was one of the reasons the US dollar buyers held the downside. Moreover, the pair found support around the 76.4% fib retracement level of the last leg from the 118.28 low to 119.82 high. Furthermore, the hourly RSI is now above the 50 level, which is a positive sign in the near term. Currently, the pair is trading above the 200 hour moving average, and attempting to break the 100 hour MA. If buyers succeed in doing so, then there is a chance of more gains in the short term.
On the downside, a break of the highlighted trend line might be bearish for the USDJPY pair, which might ignite downside reaction moving ahead.
Overall, one might consider buying dips in the USDJPY pair as long as it is trading above the stated trend line.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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