(MENAFN– Daily Forex) Since the middle of last week’s trading, the price of the US dollar currency pair against the Japanese yen, usd/jpy , is in an upward rebound path. Gains affected the resistance level 136.26, rebounding from selling operations that moved the price of the currency pair towards the support level 133.74. The trend is if it moves towards the resistance levels 136.85 and 137.80, respectively. On the other hand, the support level at 133.40 will remain the most important for the bears to control the trend again. Advertisement The yen is a popular asset during turbulent times.trade usd/jpy now! On the economic side, the USD/JPY currency pair is trading affected by the results of the latest economic data, as the Michigan Preliminary US Consumer Confidence Index for May missed the expected reading of 63 with a reading of 57.7 . Prior to that, it was announced that the US consumer price index, excluding food and energy, matched the estimates (monthly) and (yearly) at 0.4% and 5.5%. On the other hand, the PPI excluding food and energy lost the estimated change on a year-on-year basis by 3.3% with a change of 3.2% recorded, while the equivalent (monthly) matched the expected change of 0.2%.In Japan, the non-seasonal adjusted current account balance for March missed expectations at 2,847.3 billion yen with a balance of 2,278.1 billion yen. On the other hand, the trade balance based on the balance of payments settled at -454.4 billion yen, beating the expected reading of -1397.1 billion yen. The Observers’ poll beat both the current and forecast estimates of 54.1 and 52.6, respectively, with readings of 55.7 and 54.6.Technical analysis of the USD/JPY pair:
- In the near term, and according to the performance on the hourly chart, it appears that the USD/JPY is trading within a bullish channel formation.
- This indicates a significant short-term bullish bias in market sentiment.
- Therefore, the bulls will look forward to riding the current wave of gains towards 136.236 or higher at the resistance 136.677.
- On the other hand, the bears will be looking to pounce on the potential pullback around 135.196 or lower at the support 134.755.
On the long run, and according to the performance on the daily chart, it appears that the USD/JPY is trading within the formation of an ascending channel. This also indicates a significant long-term bullish bias in market sentiment. Therefore, the bulls will target long-term profits around 137.510 or higher at the resistance 139.196. On the other hand, the bears will look to pounce on potential pullbacks around 133.856 or below at 131.959 support.Ready to trade our daily forex analysis ? We’ve made a list of the best forex trading accounts worth trading with.
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