USD/JPY Bearish On Weaker USD Performance

The Japanese economy witnessed a mix between positive and negative data. Japanese current account rose 0.45T compared to 1.48T previously, while final GDP was 0.3%, less by 0.2% in last GDP. Bank lending showed no change at 2.4%. On the other hand, Chinese trade balance came 298B, less by 27B in last balance at 398B. Taking into consideration negative atmosphere in economic Asian data, one of the reasons that justifies why USD/JPY was not bullish in the weakness of US dollar performance the past few days as US index dropped to 100.00 low yesterday, not long before dropping below 100 level at 99.87 on Monday.

The pair witnessed a new record last Thursday, as USD/JPY peeked 114.82, highest level since Feb 2016. USD/JPY is bearish for the second consecutive trading sessions as it plunged 113.12 low, currently trading at 113.52 intraday, still higher than it’s weekly Pp 113.25. Traders and market seems to be busy ignoring signals sent by economic data as they both are poised for next US Fed rate meeting and what could be the outcome on the final decision regarding interest rates change.

Trend: Bullish Sideways

Key levels to watch: Weekly Pp 113.25

Resistance levels: R1 113.84, R2 114.48, R3 115.05

Support levels: S1 112.90, S2 112.50, S3 111.93

Remark: USD/JPY to be considered bullish with short-term-correction. US dollar on weak performance but still relatively strong. Market is highly poised for US fed rate decision next week but economic data cannot be ignored. Look forward for US Unemployment claims today at 1:30 PM GMT which might create some volatility in the market.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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