USD/JPY Plunges After US Consumer Confidence News

FXOpen

The US Dollar (USD) inched lower against the Japanese Yen (JPY) on Wednesday, dragging the price of USD/JPY to less than 111.50 following the US consumer confidence news. The technical bias remains bullish because of a higher low in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 111.20. A support may be seen near 111.00, the 61.8% fib level + psychological number ahead of 110.85-110.75, the short term horizontal support + 50% fib level and then 110.19, the lower trendline support as demonstrated with brown color in the given below hourly chart. A break and daily closing below the 110.19 support shall incite renewed selling pressure, validating a move towards 109.50 and then 109.20.

USD/JPY Plunges After US Consumer Confidence News

On the upside, the pair is expected to face a hurdle near 111.30, the trendline resistance area ahead of 111.46, another trendline resistance as demonstrated with pink color in the above chart and then 111.57, a major horizontal resistance zone. The technical bias shall remain bullish as long as the 110.19 support area is intact.

US Consumer Confidence

U.S. consumer confidence surged to a more than 16-year high in March amid growing labor market optimism while the goods trade deficit narrowed sharply in February, indicating the economy was regaining momentum after faltering at the start of the year. The economy’s strengthening fundamentals were underscored by other data on Tuesday showing further increases in house prices in January. Robust consumer confidence and rising household wealth from the home price gains suggest a recent slowdown in consumer spending, which has hurt growth, is likely temporary.

Trade Idea

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

 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.