The US Dollar (USD) inched lower against the Japanese Yen (JPY) on Wednesday, decreasing the price of USD/JPY to less than 112.50 following the Japan’s industrial production news. The technical bias remains bullish because of a higher high in the recent upside move.
As of this writing, the pair is being traded around 112.43. A support may be seen near 112.09, the 23.6% fib level ahead of 112.00, the psychological number and then 110.12, a short-term horizontal support area. A break and daily closing below the 110.12 support shall incite more selling pressure in the long run.
On the upside, the pair is expected to face a hurdle near 113.31, the 50% fib level ahead of 114.19, the upper trendline as demonstrated with brown color in the given above chart and then 115.50, a long term resistance level on daily chart. The technical bias shall remain bullish as long as the 110.12 support area is intact.
Japan Industrial Production
Japan’s industrial production declined less than initially estimated in March, latest figures from the Ministry of Economy, Trade, and Industry showed Wednesday. Industrial production fell 1.9% month-over-month in March instead of a 2.1% decrease reported earlier. In February, production had risen 3.2%.
Shipments dropped 0.8% over the month, slower than the 1.1% decrease seen in the flash data published on April 28. At the same time, inventories grew 1.5%, revised down slightly from 1.6%. On a yearly basis, industrial production growth eased to 3.5% in March from 4.7% in February.
Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy in short to medium term.