USD/JPY – Gap Closed, What Now?
Titan FX | Apr 18, 2016 09:51PM ET
Key Highlights
· US dollar opened lower against the Japanese yen this week with a gap, but climbed back higher and closed the gap.
· The USD/JPY pair is now back above the 100 and 200 hourly simple moving average, which is a positive sign.
· In the US, the NAHB Housing Market Index released by the National Association of Home Builders remained unchanged from 58 in April 2016.
· Today, the US Housing Starts data will be released by the US Census Bureau, at the Department of Commerce, which is forecasted to post a reading of 1.170M.
USD/JPY Technical Analysis
The US dollar tumbled against the Japanese yen on Monday opening bell, and opened with a gap down. The Japanese yen gained a lot of traction due to falling oil prices, which impacted the greenback as well.
The USD/JPY pair earlier broke a bullish trend line formed on the hourly chart to set the pace for more losses. However, the US dollar bounced back and even managed to close the gap. It is now above the 100 and 200 hourly simple moving average, which is a positive sign.
Overall, there are a lot of positive signs for the bulls and the pair may continue to trade higher.
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