Key Highlights
- The US Dollar found support near 110.80-110.00 against the Japanese Yen, and started an upside move.
- There was a break above a crucial bearish trend line with resistance at 111.80 on the 4-hours chart of USD/JPY.
- The US Initial Jobless Claims for the week ending Nov 25, 2017 declined to 238K.
- Japan’s National CPI in Oct 2017 increased to 0.2%, compared with the last +0.7%.
USDJPY Technical Analysis
The US Dollar was in a major downtrend until it found support near 110.80-110.00 against the Japanese Yen. The USD/JPY pair is now moving higher and is placed well above 112.00.
Looking at the 4-hours chart, there was a break above a crucial bearish trend line with resistance at 111.80. The pair also moved above the 38.2% Fib retracement level of the last decline from the 113.91 high to 110.84 low.
On the upside, the pair is now facing a couple of key resistances near 112.50, the 100 simple moving average (4-hour, red), 113.00 and the 200 simple moving average (green, 4-hour).
Once the pair settles above 112.50 and 113.00, there could be a retest of the all-important 114.50 resistance area. On the downside, supports are seen at 112.00 and 111.80.
US Initial Jobless Claims and Core Personal Consumption Expenditure
Recently in the US, the Initial Jobless Claims figure for the week ending Nov 25, 2017 was released by the US Department of Labor. The market was looking for a rise from the last reading of 239K to 240K.
However, the actual was better than the forecast as there was a decline in claims to 238K. On the other hand, the last reading was revised up from 239K to 240K.
The US Core Personal Consumption Expenditure for Oct 2017 was released by the US Bureau of Economic Analysis. The forecast was slated for an increase of 1.4% in the index compared with the same month a year ago.
The actual was similar to the forecast as the index increased by 1.4%. Moreover, the US Personal Income in Oct 2017 increased by 0.4%, better than the forecast of 0.3%.
Overall, the result was positive and helped USD/JPY in gaining traction above 112.00.
Economic Releases to Watch Today
Germany’s Manufacturing PMI for Nov 2017 – Forecast 62.5, versus 62.5 previous.
France Manufacturing PMI Nov 2017 – Forecast 57.5, versus 57.5 previous.
Spanish Manufacturing PMI for Nov 2017 – Forecast 56.5, versus 55.8 previous.
Euro Zone Manufacturing PMI for Nov 2017 – Forecast 60.0, versus 60.0 previous.
UK Manufacturing PMI for Nov 2017 – Forecast 55.5, versus 55.3 previous.
US Manufacturing PMI for Nov 2017 – Forecast 54.2, versus 53.8 previous.
US ISM Manufacturing Index for Nov 2017 – Forecast 58.4, versus 58.7 previous.
Canada’s Net Employment Change Nov 2017 – Forecast 10K, versus 35.3K previous.
Canada’s Unemployment Rate Nov 2017 – Forecast 6.2%, versus 6.3% previous.
