- The US Dollar after an impressive run towards 114.30 against the Japanese Yen found sellers.
- The USDJPY pair is currently trading above a major support area at 113.20 on the hourly chart.
- The US Building Permits for April 2017 released by the US Census Bureau, at the Department of Commerce posted a decline of 2.5%, which was way below the forecast.
USDJPY Technical Analysis
The US Dollar traded above the 114.00 handle recently against the Japanese Yen, and traded towards 114.40.
The USDJPY pair attempted twice to settle above 114.30, but failed. As a result, there was a downside move and the pair broke the 38.2% Fib retracement level of the last wave from the 112.38 low to 114.36 high.
At the moment, the pair is trading above a major support area at 113.20 on the hourly chart.
USDJPY Hourly Chart
The same support is near the 61.8% Fib retracement level of the last wave from the 112.38 low to 114.36 high.
On the upside, there is a crucial bearish trend line positioned at 113.65. So, there are high chances of USDJPY breaking 113.20 for a move towards 112.85.
The next major support on the downside is at 112.80-85. Below it, the pair may head towards 112.50.
US Building Permits
Today in the US, the US Building Permits for April 2017 was released by the US Census Bureau, at the Department of Commerce. The market was expecting the Building Permits to increase by around 1%, compared with the last increase of 4.2%.
The actual result was lower than the forecast, as the US Building Permits decreased by 2.5% in April 2017. Moreover, the last reading was revised down to 3.4%. The Housing Starts on the other hand, posted a decline of 2.6% in April 20147, which was better than the last -6.6% (revised).
The report added that:
Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,229,000. This is 2.5 percent (±1.1 percent) below the revised March rate of 1,260,000, but is 5.7 percent (±1.4 percent) above the April 2016 rate of 1,163,000.
Overall, the USDJPY may come under pressure and soon break the 113.20 support for more declines.