Technical Bias: Bullish
- USDJPY inches higher
- Japan’s industrial production printed slightly better reading
- Bullish pin bar keeps USDJPY in bullish momentum
The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) on Monday, increasing the price of USDJPY to more than 119.20 following the Japan’s industrial production release. The technical bias remains bullish due to a Higher High (HH) and Higher Low (HL) in the recent wave on the daily chart.
As of this writing, the pair is being traded near 119.22. A support can be seen around 119.10, the trendline support ahead of 119.00, the psychological number and then 118.32, the low of the bullish pin bar as demonstrated in the following daily chart.
On the upside, the pair is expected to face a hurdle near 119.57, the high of the bullish pin bar ahead of 120.00, the psychological number and then 120.50, a key horizontal level. The technical bias will remain bullish as long as the 118.32 support area is intact.
The Industrial Production in Japan -2.6% in February as compared to -2.8% in the same month of the year before, a report said yesterday. Generally speaking, higher industrial production figure is considered positive for the economy thus the yesterday’s slight improvement in the industrial production was seen as a goodwill sign for the Japanese Yen.
Considering the overall technical and fundamental outlook, buying the pair around the 119.10-119.00 support area appears to be a good strategy in short to medium term as described above. The trade should however be stopped out on a daily closing below the 118.32 support area.
* FXOpen International, best ECN broker of 2021, according to the IAFT