- The US Dollar is trading positive against the Japanese Yen, and likely to trade above 111.40 in the near term.
- The USDJPY pair recently broke a bearish trend line at 111.40 on the hourly chart, opening the doors for further gains.
- Today in Japan, the Corporate Service Price Index (CSPI) for April 2017 was released by the Bank of Japan.
- The result was neutral, as there was an increase of 07%, which was the same as the last reading (YoY).
USD/JPY Technical Analysis
The US Dollar recently traded lower and moved a few pips below the 111.00 handle against the Japanese Yen.
Later, the USD/JPY pair found bids near 110.95 and then started moving higher. During the upside move, the pair broke the 23.6% Fib retracement level of the last decline from the 111.72 high to 110.94 low.
Furthermore, the pair broke a bearish trend line at 111.40 on the hourly chart, which opened the doors for further gains.
USD/JPY Hourly Chart
The pair is trading higher and about to break the 50% Fib retracement level of the last decline from the 111.72 high to 110.94 low.
If buyers gain control, there is a chance of a move above the 111.40 level. On the downside, any correction towards the 111.20 level may find support.
On the upside, above 111.40, the pair could easily break the 111.54 resistance for a move towards the 111.75 swing high. Buying in the short term is a good idea as long as the pair is above 111.20.
Japan’s Corporate Service Price Index
Today in Japan, the Corporate Service Price Index (CSPI) for April 2017 was released by the Bank of Japan. The market was positioned for an increase of 0.7%, compared with the same month a year ago.
The result was as expected, as there was an increase of 0.7% in April 2017, compared with April 2016. The report published stated “The Services Producer Price Index (All items) rose 0.7 percent from the previous year. The Services Producer Price Index (All items <excluding International transportation>) rose 0.7 percent from the previous year”.
Overall, the USD/JPY pair may extend gains and trade above 111.40 soon if buyers remain in action.