The USDJPY pair rose in the Asian session after weak economic data from Japan. Where is the pair now headed? Today's technical forecast explains.
November 8, OctaFX – In October, bank lending rose by an annualized rate of 2.2%, which was higher than the consensus estimate of 2.4%.
Bank lending is important because it is an indicator of consumer spending and investments. Core machinery orders declined by an annualized rate of minus 7.0% - which was lower than the gain of 7.7% that traders were expecting and the lowest level it has been since September last year.
As a major industrial country, a decline in machinery orders is a good indicator of business performance.
USDJPY Technical Forecast
The USDJPY pair rose in the Asian session after weak economic data from Japan. It is now trading at 113.67, which is the highest level since yesterday morning.
The Average True Range indicator has fallen to 0.21, which is an indicator that the pair’s volatility is easing. The RSI indicator is at 67, which is a bullish sign while the MACD is sending bullish signals in the hourly chart.
Therefore, there is a possibility that the pair will continue the upward trend ahead of the data from the Fed.
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