Japanese yen traded higher initially this week against the US dollar, but it fell back to trade lower as the US dollar buyers managed to gain back traction in the near term.
In the US, the EIA Natural Gas Storage change which is an estimate derived from a computation process that uses both EIA (Energy Information Administration) registered a reading of -18B.
Japanese Labor Cash Earnings Indicator representing the average income, before taxes, per regular employee and includes overtime pay and bonuses released by the Ministry of Health, Labour and Welfare will also be released for in February 2015, compared to the same month a year ago.
Japanese Services Purchasing Managers Index (PMI) capturing business conditions in the services sector released by Markit Economics posted a reading of 48.4 in March 2015, compared to last reading of 48.5.
Chinese HSBC China Services PMI, which is an important indicator based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies released by Markit Economics registered a reading of 52.3 in March, compared to the last reading of 52.
Most markets will be closed today due to Good Friday bank holiday, which might cause ranging moves during the European session.
The US dollar gained bids against the Japanese yen recently, but there is a major hurdle on the upside as there is a critical bearish trend line formed on the 4-hour chart of the USDJPY pair. Moreover, the 200 simple moving average is also positioned around the same trend line. The 50% fib retracement level of the last drop from the 121.96 high to 118.27 low is aligned perfectly with the highlighted trend line. So, if the USDJPY pair manages to break above the 200 SMA (4H), then more gains are possible in the near term.
Intraday Support Level – 120.10
Intraday Resistance Level – 119.20
Overall, as long as the pair is below the broken trend line it might continue trading lower.
A break above the same could ignite more gains moving ahead.
If the USDJPY pair moves lower from the current levels, then the swing low of 119.40-20 might come into play in the short term.
The Euro gained traction against the Japanese yen, but failed to break a major bearish trend line on the 4-hour chart of the EURJPY pair. One encouraging point to note is that the pair managed to pierce the 100 simple moving average, which is a positive sign. A break above the 50% fib retracement level of the last drop from the 134.57 high to 126.86 low could take the pair higher in the near term.
Intraday Support Level – 130.80
Intraday Resistance Level – 129.60
Selling rallies around the 130.80 level look like a good option.
A break above the same might call for more gains moving ahead.
If the EURJPY pair fails to break higher and moves lower, then the 100 SMA might provide support to the pair. A break below could ignited move towards 128.60.
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New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.