Yen: Chances For Further Gains Ahead Of Local Data
FxGrow | May 29, 2017 10:12AM ET
Yen: Chances for Further Gains Ahead of Local Data
USD/JPY is currently trading near its 200-EMA (D1) at 1.1133 intraday after plunging earlier to 1.1115 low. Overall, bank holidays are overwhelming worldwide which justifies the low volatility for market today, but action should re-kick with higher volatility as economic news inaugurate Tuesday's Asian sessions with Japanese multi inflation figures and Japanese yen has the chance to extend further gains facing pale U.S Index (97.23 low) as negative media still revolves around the greenback.
Shortly after that, BOJ will release its Core CPI preceded by Japanese Unemployment Rate and Retail Sales, these three figures could give a clue on BOJ's next economic outlook for the country.
Trump and PM Abe crossed wires yesterday at G7 meeting, and both politicians agreed to take responsive measures against N. Korea, which might add questions marks around the yen being purchased as safe haven.
Fundamentals:
1- JPY - Household Spending y/y tonight at 11:30 PM GMT.
2- JPY - Unemployment Rate tonight at 11:30 PM GMT.
3- JPY - Retails Sales y/y tonight at 11:50 PM GMT.
4- JPY - BOJ Core CPI y/y tomorrow at 5:00 AM GMT.
5- USD - Core PCE Price Index m/m + Personal Spending m/m tomorrow at 12:30 PM GMT.
6- USD - Consumer Confidence tomorrow at 2:00 PM GMT.
Technical Overview:
Trend: Sideways
Resistance levels: R1 111.78 ( 50 EMA + 100 EMA) , R2 1.1250, R3 112.89
Support levels: S1 110.87, S2 110.20 (200 EMA D1), S3 1.0957
Comment: The market is in a correction phase backing off from R3 objective / resistance and may yet inject buying pressures on trade. A close above R1 will encourage further hikes back to R2. Closing below S1 alerts for trend reversal and the pair to be considered bearish. A close above R1 level is a confirmation for Bullish momentum. Currently the pair to be considered sideways trading, below 100 + 50 EMA (D1) and above 200 EMA (D1) which is considered flat trend. Look forward for Japanese Data along with U.S Data which will a better outlook on the how cable with settle for the coming hours/days.
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