USDJPY Eyes 118.40 As Japan’s Unemployment Falls

The US Dollar (USD) paused upside movement against the Japanese Yen (JPY) on Friday with the price of USDJPY hovering around 121.00 following the release of some key economic releases. The technical bias remains bearish due to a Lower Low and Lower High in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 121.02. A hurdle may be noted around 122.14, the 61.8% fib level ahead of 123.57, the 76.4% fib level and then 124.00, the psychological number as demonstrated in the following daily chart.

On the downside, the pair is expected to find a support at 120.98, the 50% fib level ahead of 118.39, the 23.6% fib level and then 116.07, the swing low of the last major downside move. The technical bias will remain bearish as long as the 125.27 resistance area is intact which is the swing high of the last major upside rally.

Japan Unemployment

Japan’s unemployment rate fell unexpectedly last month, official data showed on Thursday. In a report, the Statistics Bureau said that the percentage of the total work force that is unemployed and actively seeking employment during the previous month fell to a seasonally adjusted 3.3%, from 3.4% in the preceding month. Analysts had expected the rate of unemployment to remain unchanged at 3.4% last month.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around 118.40 support area could be a good option if we get a valid bullish reversal candle on four-hour timeframe around that level.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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