The US dollar continues to press higher against the Japanese yen currency, following a confirmed technical break above the 113.53 level. Will the USDJPY pair continue the upward trend? Today's technical analysis explains.
November 27, OctaFX – After dropping yesterday, the USDJPY started another upward rally overnight. This was a continuation of a rally that started on November 20, when the pair reached 112.30.
Overnight, the Bank of Japan released the corporate services index, which rose by 1.3%. This was higher than the consensus estimate of 1.2% and the previous month’s 1.1%.
The index measures the change in the prices of services offered by companies such as consultancies. It is an important measure of inflation. Later today, its movement will likely be caused by the US consumer confidence data.
USDJPY Technical Analysis
The USDJPY pair resumed the upward trend and reached an intraday high of 113.53. Its price is along the 15-day EMA and above the 30-day EMA.
The RSI has eased from yesterday’s high of 80 to the current 15. The pair will likely cross the resistance level of 113.65 and continue the upward trend. If it does, it will likely test the important resistance level of 114.
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