USD/JPY - US Dollar Poised For Further Gains Vs Japanese Yen
The US Dollar started an uptrend from the 108.80 low against the Japanese Yen. The USD/JPY is well into the bullish zone and looking to extend gains above 112.80 in the short term.
The pair recently traded towards 113.00 where it faced a resistance trend line. It started correcting lower, and moved below the 112.50 support.
On the downside, there is a major bullish trend line with support at 111.50 forming on the 4 hours chart. It might act as a crucial buy zone and hold losses below 111.20.
The 38.2% fib retracement level of the last leg from the 108.80 low to 112.90 high is at 111.34. So, there are many supports on the downside to protect the uptrend in the near term.Japan’s Unemployment Rate and CPI
Today in Japan, there are a few crucial releases like the Unemployment rate for May 2017 and National CPI. The Unemployment Rate for May 2017 was provided by the Ministry of Health, Labour and welfare. The market was not expecting any change from the last reading 0f 2.8%.
However, the actual result was disappointing, as the Unemployment rate climbed from 2.8% to 3.1%. On the other hand, the Jobs/applicants ratio was better with an increase from 1.48 to 1.49.
The Japanese National Consumer Price Index for May 2017 was released by the Statistics Bureau. The market was positioned for an increase of 0.5%, compared with the same month a year ago.
The actual result was on the lower side, as there was a rise of 0.4% in the CPI. Similarly, the Tokyo Consumer Price Index for May 2017 was slated for an increase of 0.3% in May 2017, compared with the same month a year ago.
The actual result was again disappointing, as there was no change in the CPI in May 2017. The overall result was below the forecast, and might put some pressure on the Japanese Yen in the near term.