usdjpy short term uptrend remains intact as japan cpi looms 2694142017
In the past three days since 27 June 2017, the USD/JPY has managed to buck against the general USD weakness trend seen across all major […]
In the past three days since 27 June 2017, the USD/JPY has managed to buck against the general USD weakness trend seen across all major […]
In the past three days since 27 June 2017, the USD/JPY has managed to buck against the general USD weakness trend seen across all major currency pairs. Primary reasons as follow:
Later today, 29 June at 2330 GMT, we will have Japan CPI data for May where the consensus is set at 0.4% y/y for core CPI ex fresh food, a slight increase from 0.3% y/y seen in April. Given the recent lacklustre retail sales for May which only rose by 2% y/y (below consensus of a 2.6% y/y increase) from 3.2% y/y seen in April, we expect the core CPI ex fresh food to come in between 0.4% y/y to 0.3% y/y. Despite a potential 5th consecutive months of positive y/y growth since January 2017, core CPI still has a lot more to catch up to reach the 2% inflation goal set by BOJ. Thus, it should not alter the recent short-term upward trajectory of USD/JPY in place since 15 June 2017.
Now, let’s take a look at USD/JPY from a technical analysis perspective.
Intermediate support: 112.10
Pivot (key support): 111.80
Resistance: 113.00/113.20
Next support: 110.75
As long as the 111.80 short-term pivotal support holds, the USD/JPY is likely to shape another potential minor degree impulsive upleg within its on-going uptrend to target 113.00/113.20 next.
On the other hand, a break below 111.80 should invalidate the short-term uptrend to open up scope for a minor corrective decline towards the next support at 110.75 (former 05 June/09 June 2017 minor swing high area & close to the 50% Fibonacci retracement of the current rally from 15 June 2017 low).
Charts are from eSignal
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