Technical Analysis: USDJPY

USDJPY increased by 0.8%

On Wednesday, as the USDX rebounded and Japan’s economic prospect was pessimistic, USDJPY increased. It ended up 0.8% at 149.55.

Japan lowered the economic prospect for the first time in 10 months

As weak domestic data dragged down Japan economy, the Cabinet Office lowered the economic prospect for the first time in 10 months. Although the economy recovered at a slower pace, it seems that the economy has been partially stagnant, the Cabinet Office said in the latest monthly report.

US initial jobless claims declined

US Initial Jobless Claims (during the week ending on the 18^th November) was 209,000 Vs. 226,000 (forecast), according to the data from the US Department of Labor on Wednesday. This figure recorded the lowest level since 14^th October. 

The bullish market trend prevailed

the Chart of the Day

On the chart of the day, USDJPY increased greatly yesterday. It is likely to rebound in the short term. In terms of technical indicators, KDJ experienced the golden cross at a low level, showing that the market trend is bullish. USDJPY will rise further with potential resistance at 151.9 if it breaks above the resistance at 150.0.

4-hour chart

On the 4-hour chart, USDJPY increased steadily. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, showing USDPY will rise further. Investors should focus on whether USDJPY will break through the support at 148.6. It will rise further if it retreats but is stable above 148.6.

Key resistance: 150.0, 151.9

Key support: 148.6, 148.0

Generally speaking, as the USDX rebounded and Japan’s economic prospect was pessimistic, USDJPY is more likely to climb further. As Thanksgiving holiday is coming, the market will be light.