Key Highlights
- The US Dollar traded higher recently and settled above 109.80 against the Japanese Yen.
- There is a major ascending channel in place with support at 110.00 on the 4-hours chart of USD/JPY.
- The US Initial Jobless Claims for the week ending June 16, 2018 posted a decline from the last revised reading of 221K to 218K.
- Today in the US, the preliminary reading of the Services PMI for June 2018 will be released, which is forecasted to decrease from 56.8 to 56.4.
USDJPY Technical Analysis
The US Dollar found decent support around the 109.50 level and recovered against the Japanese Yen. The USD/JPY pair moved above the 109.80 and 110.00 resistance levels to gain traction.
Looking at the 4-hours chart, the pair was rejected from the 100 (red) and 200 (green) simple moving average (4-hour). It bounced back sharply and traded above the 50% Fib retracement level of the last decline from the 110.90 high to 109.54 low.
However, it struggled to move above the 110.75 level and is currently consolidating in a rage. There is a major ascending channel in place with support at 110.00 on the 4-hours chart of USD/JPY.
As long as the channel support, 100 SMA, and the 200 SMA are intact, the pair remains in an uptrend for more gains above 110.75 and 111.00 in the near term.
Recently in the US, the Initial Jobless Claims for the week ending June 16, 2018 was released by the US Department of Labor. The market was looking for a rise from the last reading of 218K to 220K.
However, the result was neutral as there was a decline from the last revised reading of 221K to 218K. Therefore, there was no rise in the claims and the 4-week moving average was 221,000, a decrease of 4,000 from the previous revised reading.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for June 2018 (Preliminary) – Forecast 56.2, versus 56.9 previous.
- Germany’s Services PMI for June 2018 (Preliminary) – Forecast 52.1, versus 52.1 previous.
- Euro Zone Manufacturing PMI June 2018 (Preliminary) – Forecast 55.0, versus 55.5 previous.
- Euro Zone Services PMI for June 2018 (Preliminary) – Forecast 53.7, versus 53.8 previous.
- US Manufacturing PMI for June 2018 (Preliminary) – Forecast 56.5, versus 56.4 previous.
- US Services PMI for June 2018 (Preliminary) – Forecast 56.4, versus 56.8 previous.
- Canadian Retail Sales April 2018 (MoM) – Forecast 0%, versus +0.6% previous.
- Canadian Retail Sales ex Autos April 2018 (MoM) – Forecast +0.5%, versus -0.2% previous.
- Canadian Consumer Price Index May 2018 (MoM) – Forecast +0.3%, versus +0.3% previous.
- Canadian Consumer Price Index May 2018 (YoY) – Forecast +2.5%, versus +2.2% previous.
