- The US Dollar is gaining bullish momentum above the 113.88 support versus the Japanese Yen.
- There are two bullish trend lines with supports as 114.00 and 113.65 forming on the hourly chart of USD/JPY.
- Today in Japan, the Machinery New orders for May 2017 was released by the Cabinet Office.
- The result was below the forecast, as there was a decline of 3.6%, less than the forecast of +1.7% (MoM).
USD/JPY Technical Analysis
The US Dollar remained in a bullish trend, as it traded above the 113.50 and 113.80 resistance levels against the Japanese Yen.
The USD/JPY pair if following a nice bullish path, and placed nicely above the 114.00 handle. On the downside, there are two bullish trend lines with supports as 114.00 and 113.65 forming on the hourly chart.
These trend lines at 114.00 and 113.65 might act as a strong support and can be considered as a buy zone.
USD/JPY Hourly Chart
Moreover, the 23.6% Fib retracement level of the last wave from the 112.87 low to 114.19 high is around 113.88.
The 113.88 level was resistance earlier, and now it may act as a support zone if the pair corrects lower.
The second bullish trend line is just above the 50% Fib retracement level of the last wave from the 112.87 low to 114.19 high, which adds to its importance.
On the upside, a break above 114.20 could easily take the pair towards 114.40 or even 114.50.
Japan’s Machinery New Orders
Today in Japan, the Machinery New orders for May 2017 was released by the Cabinet Office. The market was positioned for an increase of 1.7%, compared with the previous month.
The result was below the forecast, as there was a decline of 3.6%, less than the forecast of +1.7%. When we look at the yearly change, there was an increase of 0.6%, which was a lot less than the forecast of +7.7%. The report added that:
Private-sector machinery orders, excluding volatile ones for ships and those from electric power companies, decreased a seasonally adjusted by 3.6% in May.
Overall, the USD/JPY pair may continue to gain momentum and could even test the 114.40 level in the near term.