• The US Dollar traded sharply higher against the Japanese yen this week to trade near 110.00.
• The USDJPY pair found sellers near 109.70-80, traded lower and broke a bullish trend line formed on the hourly chart.
• In Japan today, the foreign investment in Japan stocks was released by Ministry of Finance.
• The outcome was above the forecast, and better than the last reading, as it came in at ¥545.8B.
USDJPY Technical Analysis
The US Dollar made a nice move during the past few days, and broke many resistances including 108 and 108.50. The USDJPY pair traded as high as 109.76 where it found sellers, and started a downside move.
During the downside move, the pair broke a bullish trend line formed on the hourly chart, and the 23.6% Fib retracement level of the last leg from the 108.20 low to 109.76 high.
The pair traded as low as 108.56, and currently attempting to correct higher. However, there is a bearish trend line formed on the same chart, acting as a resistance for the pair and preventing gains. It looks like it holds a lot of importance in the short term.
- Guest Post Submitted By Aayush Jindal from the FXTimes Team