FXOpen
The US Dollar (USD) inched lower against the Japanese Yen (JPY) on Wednesday, dragging the price of USD/JPY to less than 111.50 following the US consumer confidence news. The technical bias remains bullish because of a higher low in the recent upside move.
Technical Analysis
As of this writing, the pair is being traded around 111.20. A support may be seen near 111.00, the 61.8% fib level + psychological number ahead of 110.85-110.75, the short term horizontal support + 50% fib level and then 110.19, the lower trendline support as demonstrated with brown color in the given below hourly chart. A break and daily closing below the 110.19 support shall incite renewed selling pressure, validating a move towards 109.50 and then 109.20.
On the upside, the pair is expected to face a hurdle near 111.30, the trendline resistance area ahead of 111.46, another trendline resistance as demonstrated with pink color in the above chart and then 111.57, a major horizontal resistance zone. The technical bias shall remain bullish as long as the 110.19 support area is intact.
US Consumer Confidence
U.S. consumer confidence surged to a more than 16-year high in March amid growing labor market optimism while the goods trade deficit narrowed sharply in February, indicating the economy was regaining momentum after faltering at the start of the year. The economy’s strengthening fundamentals were underscored by other data on Tuesday showing further increases in house prices in January. Robust consumer confidence and rising household wealth from the home price gains suggest a recent slowdown in consumer spending, which has hurt growth, is likely temporary.
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