USD/JPY steady ahead of major economic releases

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.

USD/JPY steady ahead of major economic releases

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 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.

Latest from Forex Analysis

Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News GBP/USD Price Falls to 1.26 after Bank of England Decision Market Analysis: AUD/USD and NZD/USD Signal More Losses

Latest articles

What Is a Megaphone Pattern and How Can You Trade It?
Trader’s Tools

What Is a Megaphone Pattern and How Can You Trade It?

Chart patterns have been used to analyse financial markets for a long time. One popular formation in forex and other markets is the Megaphone. In this text by FXOpen, we'll explain what the setup is and how to trade using

Indices

NIKKEI-225 Analysis Indicates Possibility of Correction from Historically High Levels

On March 21, the value of the Japanese stock index reached a historical maximum, exceeding the level of 41,100 points. This was facilitated by:

→ Weak yen supporting exporters. It increases the value of profits earned abroad for a large

Forex Analysis

Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace

GBP/USD declined below the 1.2665 support zone. USD/CAD is rising and might aim for more gains above the 1.3610 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

· The British Pound started a fresh

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. 65.68% 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.