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

USD/CAD Rate Reaches Significant Support Level Dollar Declines: How Deep Could the Correction Be? USD/JPY Analysis: Rate Rises Above 159.9 Yen per Dollar SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead?

Latest articles

Forex Analysis

USD/CAD Rate Reaches Significant Support Level

On June 12, we wrote about bearish signs observed on the USD/CAD chart, pointing to the prospect of USD weakening.

Since then, the USD/CAD rate has decreased by approximately 0.75% and has reached an important support level,

Indices

Nasdaq 100 Index Failed to Hold Above 20,000 Points

On 18th June, we reported that the Nasdaq 100 (US Tech 100 mini on FXOpen) market had recorded a historic high by surpassing the psychological level of 20,000.

At that time, we pointed to the upper line of the

Forex Analysis

Dollar Declines: How Deep Could the Correction Be?

By the end of last week, the American currency traded rather mixed:

  • The USD/JPY currency pair strengthened by more than 200 pips and almost tested the significant resistance level at 160.00.
  • The USD/CAD pair failed to break
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.