USDJPY has been in a bullish trend since the start of the week and currently at the edge of a break above the resistance 111.60. Today JPY had the All Industry Activity report which was published at 0.7% that was quite close to the expectation at 0.8%. On the other hand, yesterday the USD New Home Sales report, which was very positive at 621k (vs. 590k expected), helped USD to gain more strength against JPY yesterday. Today the Crude Oil Inventories Report published today was at -3.6M, which was expected to be at -1.1M. Despite an average economic report today, USD is still dominating JPY and further increase in the USD is expected in the coming days unless JPY comes up with a positive economic report in the future.
Now let us look at the technical view. The price is currently residing just below the resistance level of 111.60. Currently, the price has taken out the 20 EMA with a daily close. If the price closes above 111.60 with a daily close today, then we will be expecting further upward move towards the 114.60 resistance level. On the other hand, if the price rejects the 111.60 resistance level today with a daily close, then we will be looking forward for the price to drop down to 110.10, which is the nearest support level.
