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USD/JPY Analysis – Can US Dollar Break 111.00 Vs Japanese Yen?

  • The US Dollar after a sharp decline towards 110.00 versus the Japanese Yen found support.
  • There was a break above a major bearish trend line at 110.30 on the hourly chart of USD/JPY.
  • Today in Japan, the Monetary Base report for July 2017 was released by the Bank of Japan.
  • The result was below the forecast, as there was an increase of 15.6% in the Monetary Base (YoY).

USD/JPY Technical Analysis

The US Dollar declined from well above 112.00 towards 110.00 against the Japanese Yen before finding support on the downside.

The USD/JPY pair traded as low as 109.92 where buyers emerged and protected further declines. A correction wave is initiated, and the pair is now above the 23.6% Fib retracement level of the last decline from the 112.17 high to 109.92 low.

Moreover, there was a break above a major bearish trend line at 110.30 on the hourly chart of USD/JPY.

USD/JPY Hourly Chart

USD/JPY Technical Analysis

At the moment, the pair is trading near a major hurdle of 110.80 and 111.00. The stated area was a support earlier, and now it may prevent gains above 111.00.

It also represents the 38.2% Fib retracement level of the last decline from the 112.17 high to 109.92 low. Once, there is a close above the 111.00 handle, there are chances of an upside move towards 111.30 in the near term.

On the downside, the 110.40 level is an immediate support followed by 110.20.

Japan’s Monetary Base

Today in Japan, the Monetary Base report for July 2017 was released by the Bank of Japan. The market was positioned for an increase of 16.6% in the Monetary Base compared with the same month a year ago.

The result was below the forecast, as there was an increase of 15.6% in the Monetary Base. It was 1.4% less than the last increase of 17%. The bank notes in circulation were 4.6%, unchanged from the last reading. The Current Account Balances were 19.3%, which was down from the last 21.3%.

Overall, the USD/JPY pair may continue to move higher towards the 111.30 level in the near term.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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