Key Highlights
- The US Dollar is following a nice uptrend and is currently trading above 112.00 against the Japanese Yen.
- There is a major bullish trend line forming with support at 112.30 on the 4-hours chart of USD/JPY.
- Japan’s National Consumer Price Index in August 2017 posted an increase of 0.7% (YoY), more than the last +0.4%.
- Japan’s Industrial Production rose 5.4% (Prelim) in August 2017, more than the forecast of +5.2%.
USDJPY Technical Analysis
The US Dollar started a solid uptrend in Sep 2017 and moved above the 110.00 and 112.00 resistance levels against the Japanese Yen. The USD/JPY pair remains in an uptrend and eyeing further upsides above 113.00.
Looking at the 4-hours chart of USD/JPY, there is a major bullish trend line forming with support at 112.30. The pair recently corrected from the 113.25 high and tested the 112.20 support area.
The mentioned 112.20 support acted as a key buy zone and as a result, the pair is currently moving higher. It has already breached the 23.6% Fib retracement level of the last decline from the 113.25 high to 112.25 low.
On the upside, an initial resistance is near 112.75 and the 50% Fib retracement level of the last decline from the 113.25 high to 112.25 low. Above 112.75, the pair might look to extend gains above the 113.00 handle.
Japan’s CPI and industrial Production
Today, Japan saw a few major economic releases for August 2017, including the National CPI, Tokyo’s CPI and the Industrial Production figure.
The National Consumer Price Index for August 2017 was released by the Statistics Bureau. The forecast was slated for a rise of 0.7% compared with the same month a year ago, and more than the last +0.4%.
The result was in line with the forecast, as the CPI rose 0.7%. The National Consumer Price Index Ex Food and energy increased 0.2% (YoY), more than the last +0.1%.
The Japanese Industrial Production for August 2017 (Prelim) was released by the Ministry of Economy, Trade and Industry. The forecast was slated for a 5.2% rise compared with the same month a year ago.
The actual result was above the forecast, as there was an increase of 5.4% in the production. It was a lot higher compared with the last +4.7%.
The overall result was positive, but the USD/JPY pair might continue to gain upward momentum as long as it is above 112.00.
