USD/JPY: Dollar To Yen Preparing For Another Decline
Titan FX | Feb 20, 2017 09:12PM ET
Key Highlights
· The US dollar after a rejection just below 115.00 against the Japanese yen moved down sharply.
· A monster bearish trend line on the 4-hours chart of USD/JPY protected further gains near 114.95.
· Today, the Japanese Nikkei Manufacturing PMI preliminary reading for Feb 2017 was released, which came in at 53.5 vs the 52.1 forecast.
· Today, the US Manufacturing PMI preliminary reading for Feb 2017 will be released, forecast 55.2 vs the 55.00 previous.
USD/JPY Technical Analysis
The US dollar is slightly under pressure against the Japanese yen with resistance near 114.00. The USD/JPY may decline once again and retest the last swing low of 112.60.
This past week, the pair gained pace and traded towards the 115.00 handle. However, it failed near a monster bearish trend line on the 4-hours chart at 114.94. The rejection was such that the pair moved down sharply.
During the downside, it also broke the 50% Fib retracement level of the last wave from the 111.63 low to 114.94 high. So, there are chances that the pair might head lower once again and retest the 112.50-60 support area.
Any major corrections from the current levels may face sellers near 113.80 or 114.00.
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