The past week has seen the USDJPY maintain a bullish lean, with frequent bounces into the 200-period moving average, keeping the pair close to major averages. Will the pair continue the upward move? Today's technical analysis reveals..
November 12, OctaFX – The Japanese yen fell against the USD today even after the better-than-expected producer price index (PPI). The PPI measures the change in selling price of goods purchased by companies and is a good measure of inflation.
The data showed that the PPI rose by an annualized rate of 2.9%. This was higher than the estimated increase of 2.8%. It was, however, lower than September’s increase of 3.0%. On a monthly basis, the PPI rose by 0.3%, which was higher than the consensus estimates of 0.1%.
Later today, the country will release the preliminary numbers of machine tools.
USDJPY Technical Outlook
In the final week of October, the USDJPY pair reached a low of 111.36. It then started rising and reached a high of 114.01 today as it tries to reach the important resistance level of 114.54.
The RSI on the four-hour chart rose to 65 while the double EMA showed that the pair could continue moving higher. The momentum indicator is currently above 100, which means that the pair will likely move higher. If it does, it will test the previous high of 114.54.
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