The US Dollar (USD) inched higher against the Japanese Yen (JPY) on Wednesday, increasing the price of USDJPY to more than 111.00 amid some key economic releases. The technical bias remains bearish because of a lower high in the recent upside move.
As of this writing, the USDJPY pair is being traded around 111.21. A hurdle may be noticed near 111.92, an immediate trendline resistance area ahead of 112.00, the psychological number and then 113.39, the high of the last major upside rally as demonstrated in the given below daily chart.
On the downside, a support may be seen near 109.26, an immediate trendline support area ahead of 107.97, the 50% fib level and then 107.55, another trendline support level as demonstrated with pink color in the above daily chart. The technical bias shall remain bullish as long as the 107.55 support level is intact.
Japan Tertiary Activity Index
Japan’s tertiary activity index increased for the second straight month in May, though marginally, data from the Ministry of Economy, Trade and Industry showed Wednesday.
The tertiary activity index edged up 0.1 percent month-over-month in May, following a 1.0 percent rise in April. In contrast, economists had expected a 0.3 percent decrease for the month.
On a yearly basis, the tertiary activity index climbed 1.2 percent in May after a 1.3 percent rise in the prior month.
Considering the overall technical and fundamental outlook, selling the USDJPY pair near current levels appears to be a good strategy in short to medium term.