The Japanese Yen is strongly bullish, triggering an inverted head and shoulder pattern with a two hundred pip upside projection. What level could the USDJPY pair test next?
28 September, OctaFX – Japanese Yen fell to a YTD low of 113.61 despite the positive reviews from the meeting between Donald Trump and Shinzo Abe. The meeting resolved to restart the free trade agreement between the two countries.
The drop in price was partly because of the disappointing industrial production data for the month of August. The data showed that industrial production rose to 0.7%, which was lower than the expected 1.5%. It was however better than July’s contraction of 0.2%.
This was offset by the positive retail sales numbers that rose by 2.7%, which was lower than the expected 2.2%. It was also offset by the inflation numbers for Tokyo. The Tokyo CPI rose by 1.3% which was higher than the 1.1% traders were expecting.
The unemployment rate fell to 2.4%, which was lower than the expected 2.5%.
Japanese Yen Strongly Bullish
The US dollar has moved to a fresh 2018 trading high against the Japanese yen currency, as the greenback strengthens across the board.
Buyers have now broken above the 113.17 level, triggering the bullish inverted head and shoulder pattern with a two hundred pip upside projection. Given the bullish price-action, the USDJPY pair could soon test towards the 114.10 level.
- The USDJPY pair is strongly bullish while trading above the 113.17 level, key resistance is now found at the 113.80 and 114.10 levels.
- If the USDJPY pair moves below the 113.17 level, key support is found at the 113.00 and 112.70 levels.
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