The US Dollar was slowly seen moving down against the Japanese yen, and it moved below the 117.50 support area, which is now acting as a resistance. The USDJPY pair is also below a crucial bearish trend line formed on the hourly chart. The technical bias remains slightly bearish on smaller timeframes because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded around 117.33. A hurdle may be seen around the channel resistance as demonstrated in the given below chart.

The highlighted trend line is also positioned with the 21 hourly simple moving average. So, we can say there is a major resistance and sell zone at 117.50.

On the downside, the 61.8% Fib retracement level of the last wave from the 116.52 low to 118.21 high is acting as a short-term support.

Japanese National Consumer Price Index

Today, the Japanese National Consumer Price Index, which is a measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services was released by the Statistics Bureau.

The market was positioned for a minor rise in Nov 2016, compared with the same month a year ago. However, the result was on the positive side, as there was an increase of 0.5% in Nov 2016. When we have a look at the monthly change, there was a positive reading.

Overall, the result was better, which is helping the Japanese yen. So, there are chances of more dips in

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around channel resistance seems to be a good strategy in short to medium term.