The US Dollar is currently trending higher versus the Japanese yen, but it looks like the USDJPY pair is soon approaching a crucial resistance at 106.80-107.00.
USDJPY Weekly Analysis – US Dollar To Yen Approaching Crucial Resistance
· The US Dollar recently broke the 105.00 resistance versus the Japanese yen to gain momentum.
· It looks like there is a monster resistance formed near 106.80-107.00 on the weekly chart of USDJPY.
· The Japanese unemployment rate published today posted a decline from 3.1% to 3% in Sep 2016.
USDJPY Technical Analysis
We saw a major decline in Sep 2016 in the US dollar, as it traded towards the 100 handle against the Japanese yen. However, the USDJPY pair later managed to recover. It traded above the 23.6% Fib retracement level of the last drop from the 114.55 high to 99.06 low to open the doors for more gains.
The pair also closed above the 115.00 resistance, but it looks like the pair is soon approaching a monster resistance formed near 106.80-107.00.
There is a bearish trend line formed on the weekly chart, meeting at the 106.80 resistance. The 50% Fib retracement level of the last drop from the 114.55 high to 99.06 low is also positioned near the same resistance. So, there are chances of the pair facing sellers near the highlighted resistance area.
Trade Idea – If you are looking to enter a sell trade in the medium term, then consider it near 107.00 with a stop of around 30-40 pips.
Today, Japan saw a couple of major economic releases. The Unemployment Rate which comes from the Ministry of Health, Labour and welfare and was published by the Japan Statistics Bureau.
The market was not expecting any decline from the last rate of 3.1% in Sep 2016. However, the result was better, as there was a decline in the Unemployment Rate from 3.1% to 3%. There were a few other releases as well like the CPI report, which failed to impress the yen buyers.
It looks like the pair may climb further higher, but may face a solid hurdle near 107.00 in the near term.