Euro Dollar Japanese Yen

USD/JPY Analysis – US Dollar Approaching Key Resistance Vs Japanese Yen

  • The US Dollar after declining towards the 108.70 level versus the Japanese Yen found support.
  • There was a break above a major bearish trend line at 109.25 on the hourly chart of USD/JPY.
  • Today in Japan, the Gross Domestic Product for Q2 2017 (Prelim) was released by the Cabinet Office.
  • The result was above the forecast of +0.6%, as there was an increase of 1% in the GDP (QoQ).

USD/JPY Technical Analysis

The US Dollar was under a lot of pressure this past week and traded below the 111.00 and 110.00 support levels against the Japanese Yen.

The USD/JPY pair traded as low as 108.71 from where a minor correction wave was initiated. The pair managed to move above the 23.6% Fib retracement level of the last decline from the 110.17 high to 108.71 low.

Furthermore, there was a break above a major bearish trend line at 109.25 on the hourly chart of USD/JPY.

USD/JPY Hourly Chart

USD/JPY Technical Analysis US Dollar Japanese Yen

The pair traded with a positive tone and was able to break the 50% Fib retracement level of the last decline from the 110.17 high to 108.71 low.

At the moment, the pair is trading near a major resistance of 109.60-110.00. The mentioned levels provided support earlier, and now preventing gains above 110.00.

If the pair succeeds in trading above the 109.65 level, there is a chance of it testing the 110.00 level. Any dips towards 109.25-10 levels remain supported in the short term.

Japan’s Gross Domestic Product

Today in Japan, the Gross Domestic Product for Q2 2017 was released by the Cabinet Office. The market was positioned for an increase of 0.6% in the GDP compared with the previous quarter.

The actual outcome was above the forecast of +0.6%, as there was an increase of 1% (Prelim) in the GDP. Looking at the yearly change, the market was positioned for an increase of 2.5% in the GDP compared with the same quarter a year ago.

However, again the result was positive, as the Japanese GDP is expected to grow by 4% (Prelim) in Q2 2017. The last reading was also revised up from 1% to 1.5%.

Overall, the USD/JPY pair may decline a few pips from the current levels, but most likely to continue trading higher towards 110.00.

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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