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There US dollar busted higher against a few major currencies, including the Euro and the British pound. However, there was not much momentum against the Japanese yen. In fact the USDJPY pair was recently seen struggling around a critical resistance area. Is it currently moving lower and there is chance that it might continue to head lower. There are a few important releases lined up in the US today, including the retail sales report representing the total receipts of retail stores published by the US Census Bureau. Let us see how the outcome shapes up as the forecast is of a 0.3% gain in February 2015, compared to the last month.

There is a crucial bearish trend line formed on the hourly chart of the USDJPY pair, which acted as a barrier time and again for the pair. Recently, the pair failed around the 121.60 resistance area and currently moving lower. There is a possibility that the pair might head towards the 100 hour simple moving average, which is sitting around the 121.10 support area. The 121.00 level holds a lot of importance in the near term as the US dollar buyers might try to defend downside around the mentioned area. A break below the same might set the pair for a move towards the last swing low of 120.84.

If the USDJPY pair moves higher from here, then the 121.60-70 area might act as a resistance. However, the most critical resistance is around the highlighted trend line.

Overall, one might consider selling rallies in the USDJPY pair around the highlighted trend line as long as it stays below the same.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com