Today’s economic data from Japan today showed that household spending for April rose 0.2% on monthly basis, better than expected. Analysts expected the data would fall 0.6%. Meanwhile, unemployment rate remains at 3.2% in line with market expectation. Industrial production rose 0.3% on monthly basis, also better than expected. The industrial data was expected to decline 1.5%.

However, for short-term trading USD/JPY remains in uptrend, which means the yen is not that strong against the greenback. On hourly chart, USD/JPY currently is in upward trajectory despite the correction that occurs from intraday key resistance at 111.440. The intraday bias remains bullish especially if the price managed to break the key resistance, with 111.993 as target and 112.456 in extension. 
Note that hourly stochastic is overbought, so we might need to be careful of possible correction today. In that case, watch for bullish signal confirmation on a pull-back move to the 50% Fibonacci support area at 110.424 with target at 110.960-111.440. 
Be careful f the price managed to break the Fib’s support because it will turn the intraday bias to bearish and possibly will be followed by bearish move towards 109.843-109.408.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.