USDJPY Continues Losing Streak After US Durable Goods Data

FXOpen

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.

USDJPY Continues Losing Streak After US Durable Goods Data

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.

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Exchange Rate Has Fallen Below 1.08 Level In the Spotlight: US Inflation and GDP Data GBP/JPY at Highest Level in Over 15 Years The Dollar Resumes Growth After a Corrective Pullback Market Analysis: EUR/USD Slips as USD/CHF Targets Upside Break

Latest articles

Indices

Nasdaq Index Shows Uncertainty Ahead of PCE Release

The main event of the week is the release of the Personal Consumption Expenditures (PCE) index, which the Federal Reserve particularly focuses on when assessing inflation in the US. The release is scheduled for Friday at 15:30 GMT+3.

Forex Analysis

EUR/USD Exchange Rate Has Fallen Below 1.08 Level

As the EUR/USD chart today shows, yesterday the rate dropped by 0.46% – the most significant strengthening of the US dollar against the euro in one day this month. Moreover, the rate fell below the psychological mark of 1.

Forex Analysis

In the Spotlight: US Inflation and GDP Data

In the final trading sessions of May, leading currencies have been in a downward trend against the dollar. For instance, the pound/dollar pair lost over 100 pips in a single day, euro sellers in the EUR/USD pair are

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.