FXOpen
The US Dollar (USD) inched lower against the Japanese Yen (JPY) on Wednesday, decreasing the price of USD/JPY to less than 109.50 following some key economic releases. The technical bias remains bullish because of a lower high in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 109.27. A support may be seen near 109.00, the psychological number ahead of 109.48, a short-term horizontal support zone and then 108.19, the low of the last major downside move as demonstrated in the given below daily chart. A break and daily closing below the 108.19 support shall incite more selling pressure in the long run.
On the upside, the pair is expected to face a hurdle near 110.42, an immediate trendline resistance ahead of 111.00, the psychological number and then 111.66, the upper trendline as demonstrated with pink color in the above daily chart. The technical bias shall remain bearish as long as the 111.66 resistance area is intact.
Japan’s Index of Coincident
Japan’s index gauging the current state of the economy hit a nine-year high in April, government data showed on Wednesday, a sign a solid recovery was taking hold thanks to improvements in the global economy. Robust factory output of automobile and electronic parts was the main driver of the improvement, adding to a recent slew of bright signs for the export-reliant economy. The index of coincident economic indicators, which consists of data such as industrial output, employment, and retail sales, rose 3.3 points from the previous month to 117.7 in April, the highest level since February 2008.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy in short to medium term.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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
Latest articles
US Government Shutdown: Assessing Economic Impact and Recession Risks
The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid
S&P 500 Analysis: Price Reaches The Edge of Abyss
Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached
Bitcoin Cash Analysis: Promising Resistance Breakout
Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of