FXOpen
US Dollar / Japanese Yen (USD/JPY) gave up some of the yesterday’s gain on Wednesday, however, the pair is finding support around the old trendline resistance which is not acting as critical support level, later in the US session a few major economic releases about the US economy should provide clear direction to the pair.
As of this writing, USD/JPY is being traded near 102.14. The nearest support can be seen around 102.12 that is the trendline support, ahead of 101.80 which is 23.6% fib level. A break below 101.80 shall expose more downside movement towards 100.75.
.png)
On upside, the pair is expected to face the first hurdle around 102.50 which is 38.2% fib level ahead of 103.08 that is 50% fib level. A rebound is likely from 103.08. The bias will remain bearish as far as the pair is being traded below the 103.00 handle.
Both the Relative Strength Index (RSI) and the Commodity Channel Index (CCI) are showing neutral readings which means rallies and dips are likely in near future. No signs of divergence are being noted with MACD, the histogram of MACD is showing very thin volumes.
Today a number of important US economic releases are scheduled for release. First, the Mortgage Bankers Associate (MBA) will release the figure for mortgage applications received by different financial institutions during February. A high reading will be positive for USD/JPY and vice versa.
Similarly, the Institute of Supply Management (ISM) will release Non-Manufacturing or Services Purchasing Managers Index (PMI) for the US economy. According to the median forecast of various analysts, surveyed by Bloomberg, the activity in the services sector declined to 53.5 points in February as compared to 54 points in the month before. A better than expected actual outcome will be bullish for USD/JPY. Likewise, ADP Employment Change and Markit Services PMI are also due later in the US session.
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