The US Dollar (USD) inched lower against the Japanese Yen (JPY) on Thursday, decreasing the price of USDJPY to less than 113.00 amid some key economic news. The technical bias remains bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 112.79. A support can be noted around 112.75, short term horizontal support area ahead of 112.46, a critical support level and then 111.59, the low of 6th February 2017.

On the upside, a hurdle may be noted near 114.78, the immediate resistance zone ahead of 115.37, the high of January 27th, 2017 as demonstrated in the given above chart. A break and four-hour closing above the 115.37 resistance shall incite increased buying pressure, validating a rally towards the 117.00 resistance zone in short to medium term. The technical bias shall remain bullish as long as the 111.59 support area is intact.

Japan’s Trade Balance

The number of people who filed for unemployment assistance in the U.S. last week rose slightly more than forecast, but remained in territory consistent with a firming of the American labor market, official data showed on Thursday. In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 18 increased by 6,000 to a seasonally adjusted 244,000 from the previous week’s total of 238,000 which was revised from an initial reading of 239,000. Analysts had expected jobless claims to rise by 2,000 from the original reading to 241,000 last week.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.