USD/JPY Holds Off Upward Channel Support Amid Key Economic Releases

FXOpen

The US Dollar (USD) extended downside movement against the Japanese Yen (JPY) on Wednesday, dragging the price of USDJPY to less than 117.50 following the release of some key economic news. The technical bias remains bearish because of a lower high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 117.48. A support may be seen near 117.45, the trendline support ahead of 117.00, the psychological number and then 116.50, a key horizontal support area.

USD/JPY Holds Off Upward Channel Support Amid Key Economic Releases

On the upside, the pair is expected to face a hurdle near 117.74, the swing high of the last major upside rally on the hourly timeframe as demonstrated in the given above chart. A break and hourly closing above the trendline resistance shall incite renewed buying interest, validating a move towards the 118.70 resistance zone. The technical bias shall remain bearish as long as the 117.74 resistance area is intact.

Japan’s Industrial Production

Industrial production in Japan rose less-than-expected last month, preliminary data showed on Tuesday. In a report, the Ministry of Economy, Trade and Industry said that industrial production rose to a seasonally adjusted 1.5%, from 0.0% in the preceding month. Analysts had expected industrial production to rise 1.6% last month.

Japan’s Retail Sales

Japanese retail sales rose more-than-expected last month, official data showed on Tuesday. In a report, the Ministry of Economy Trade and Industry said that retail sales rose to a seasonally adjusted annual rate of 1.7%, from -0.1% in the preceding month. Analysts had expected retail sales to rise at annual rate of to 0.9% last month.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on a breakout through the lower channel support appears to 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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

UnitedHealth (UNH) Share Price Plummets

UnitedHealth shares crashed by nearly 23% yesterday after the healthcare giant reported weaker-than-expected Q1 2025 results:

→ Earnings per share: actual = $7.20, expected = $7.29
→ Revenue: actual = $109.5bn, expected = $111.5bn

Technical Analysis of UNH Share Chart

As far

Indices

Stock Markets Consolidate Ahead of the Holidays

A lull is expected on the financial markets today due to a shortened trading week related to the Easter holiday celebrations.

It is reasonable to assume that traders will get a “breather” after a news-heavy April, which caused a volatile

Forex Analysis

The Pound and Euro Reach New Yearly Highs

Despite global economic instability and Donald Trump’s tariff policy, the EUR/USD and GBP/USD currency pairs are demonstrating upward momentum, reaching new yearly highs.

Today, market participants are focused on the European Central Bank meeting, where significant statements

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.