Key Highlights
- The US Dollar is trading above the 112.50 support against the Japanese Yen, and poised for more gains.
- There is a crucial contracting triangle forming with resistance near 113.20 on the 4-hours chart of USD/JPY.
- Japan’s Leading Economic Index in August 2017 (Prelim) came in at 106.8, up from the last 105.2.
- Today in the US, the Nonfarm payrolls figure will be released for Sep 2017, which is forecasted to register 90K, down from 156K.
USDJPY Technical Analysis
The US Dollar remains in a nice uptrend above 112.00 against the Japanese Yen. The USD/JPY pair seems to be preparing for an upside break above 113.20 to test 114.00 in the near term.
Looking at 4-hours chart, the pair is well above the 100 simple moving average (Red) and 112.20. It is a positive sign and points more gains in the near term above 113.00.
At the outset, there is a crucial contracting triangle forming with resistance near 113.20 on the same chart. If buyers remain in control, there is a chance of an upside break above the channel resistance at 113.20.
The next major hurdle is near 114.00. On the downside, the channel support at 112.50-60 is a major buy zone and most likely to protect declines in USD/JPY.
Japan’s Leading Economic Index
Today in Japan, the Leading Economic Index preliminary reading for August 2017 was released by the Cabinet Office. The forecast was slated for an increase from the last reading of 105.2 to 107.2.
The actual result was on the lower side, as there was a rise to 106.8. On the other hand, the Coincident Index preliminary reading was forecasted to rise from 115.7 to 117.5 in August 2017. The actual was better, the index rose to 117.6.
The results were neutral and might not help the Japanese Yen, which means the USD/JPY remains poised for a move above 113.20.
Economic Releases to Watch Today
US nonfarm payrolls Sep 2017 – Forecast 90K, versus 156K previous.
US Unemployment Rate Sep 2017 – Forecast 4.4%, versus 4.4% previous.
US Average Hourly Earnings (MoM) Sep 2017 – Forecast 0.3%, versus 0.1% previous.
Canada’s employment Change payrolls Sep 2017 – Forecast 14.5K, versus 22.2K previous.
Canada’s Unemployment Rate Sep 2017 – Forecast 6.3%, versus 6.2% previous.
Canada’s Ivey PMI Sep 2017 – Forecast 56.0, versus 56.3 previous.
