Yen Trading Mixed, Likely To Lose Ground Against Dollar
Japanese yen continued to struggle against the US dollar, as every time yen buyers step in they lose control and the USDJPY pair trades back higher.
New Zealand Building Permits released by the Statistics New Zealand registered a reading of -3.8% in January 2015, compared to the same month of the last year in which it declined by 2.1%.
Japanese National Consumer Price Index is released by the Statistics Bureau registered an increase of 2.4% in January 2015, compared to the last time increase of 2.4%.
Japanese National CPI Ex Food, Energy managed to rose by 2.1% in January 2015, compared to same month a year ago.
Japanese Unemployment Rate which comes from the Ministry of Health, Labour and welfare and it's published by the Japan Statistics Bureau came in at 3.6% in January 2015.
Japanese Industrial Production released by the Ministry of Economy, Trade and Industry registered a reading of -2.6%, compared to the last reading of 1%.
Japanese retail trade was also released around the same time, which registered a reading of -2%, compared to the last reading of 0.2% and the market was expecting it to be around -1.3%.
GBPUSD continues to trade in a range and awaits move in the US dollar for action.
The Euro weakened a lot against the Japanese yen, as it traded lower towards the 133.00 support area recently. There is a major bearish trend line on the daily chart, which acted as a monster resistance for the EURJPY pair and prevented upside in the near term. One more important point to note is the fact that the 38.2% fib retracement level of the last drop from the 147.19 high to 130.17 low was around the same area where the highlighted trend line was positioned.
Intraday Support Level – 133.00
Intraday Resistance Level – 134.20
Overall, as long as the pair is below the highlighted trend line it might continue trading lower.
A break above the same could ignite more gains moving ahead.
If the EURJPY pair moves lower from the current levels, then the 133.00 support area might come into play where the Euro buyers might step in to protect the downside in the pair.
The US dollar mostly consolidated in a range against the Japanese yen on the higher timeframe, but if we look at lower timeframe then the latter one struggled. There is a bearish trend line on the daily timeframe for the USDJPY pair, which is likely to act as a hurdle for the pair if it moves higher from the current levels. Let us see how it trades in the near term and whether move lower or not.
Intraday Support Level – 120.00
Intraday Resistance Level – 119.20
Buying dips around the 119.00 support area look like a good option.
A break below the same might call for more losses moving ahead.
On the upside, the 120.00 level might continue to act as a pivot area for the pair in the near term.
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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.
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