The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) on Friday, increasing the price of USDJPY for the sixth day in a row to more than 113.00 following the release of some key economic news. The technical bias however remains bearish because of a Lower Low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded near 113.13. A support may be noted near 112.22, a major horizontal support ahead of 110.66, the swing low of the last major downside move as demonstrated in the following daily chart.
On the upside, the pair is likely to face a hurdle near 114.13, a major horizontal resistance and then 114.55, the high February 2016. A break above the 114.55 resistance area could push the pair into bullish trend, opening doors for a move above 115.00 in near term.
US Durable Goods Orders
New orders for durable goods—products designed to last at least three years, like dishwashers and aircraft—fell a seasonally adjusted 2.8% in February from a month earlier, the Commerce Department said Thursday. Durable-goods statistics are volatile and subject to large revisions. The durable-goods print was broadly in line with expectations: economists surveyed by The Wall Street Journal had forecast a 3% drop in February from the prior month.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair near 114.00 handle appears to be a good strategy in short to medium term if we get a valid bearish reversal candle near the abovementioned resistance area.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
