The US Dollar (USD) inched lower against the Japanese Yen (JPY) on Monday, decreasing the price of USD/JPY to less than 111.50 following some key economic releases. The technical bias remains bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 111.27. A support may be seen near 110.44, the 23.6% fib level ahead of 110.00, the psychological number and then 109.12, a short-term horizontal support area. A break and daily closing below the 109.12 support shall incite more selling pressure in the long run.
On the upside, the pair is expected to face a hurdle near 113.31, the 50% fib level ahead of 114.19, the upper trendline as demonstrated with brown color in the given above chart and then 115.50, a long term resistance level on daily chart. The technical bias shall remain bullish as long as the 109.12 support area is intact.
US Durable Goods Orders
U.S. orders for long-lasting manufactured goods fell less than forecast in April, although the core reading unexpectedly dipped, giving a mixed symbol for the U.S. economy at the beginning of the second quarter, according to official data released on Friday.
Total durable goods orders, which include transportation items, decreased by 0.7% last month, the Commerce Department said, compared to economists’ expectations for a decline of 1.2%.
March’s orders were revised up to show a gain of 2.3% from a previously reported 0.7% increase.
Durable goods are typically bulky or heavy manufactured products designed to last at least three years.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.
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