The US dollar is trading with a cautious tone against the Japanese yen, as financial market participants await the outcome of US President Trump’s meeting with Chinese President Xi Jinping at the G20 Summit.
November 30, OctaFX – The yen was little moved in overnight trading even after disappointing data. The jobs/applications ratio moved to 1.62, which was lower than September’s 1.64.
The consensus estimate was 1.65. Consumer prices in Tokyo rose by 0.8%, which was worse than the 1.1% that traders were expecting. The unemployment rate rose to 2.4% from September’s 2.3%.
On a positive note, the country’s industrial production number rose by 2.9%. This was higher than the consensus estimate of 1.2%.
USDJPY Technical Analysis
A bullish outcome from the leaders meeting will likely support heavy USDJPY buying, while a bearish outcome should put further downside pressure on the USDJPY pair.
- The USDJPY pair is only bullish while trading above the 114.02 level, key resistance is found at the 114.54 and 115.00 levels.
- If the USDJPY pair trades below the 113.15 level, key technical support is found at the 112.60 and 111.30 levels.
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