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US Dollar Supported Even After Downbeat Data, Focus Turned Towards Yellen Testimony

(USDJPY : 4 Hour Chart)

US dollar is trading higher today even after the downbeat US data. Seems like investors are mainly waiting for Fed Chair Janet Yellen to testify. On the 4 hour chart, the pair is supported by the rising support trend line and currently testing the resistance at 101.64. If we ignore the falling resistance trend line the pair seems like trading within an ascending triangle so the pair should continue to follow the uptrend according to the triangle however it might also reverse the trend breaking below the rising support trend line depending on the tone of Yellen on economy.

What Moving Averages Are Indicating?

The 50 day SMA and 100 day SMA are also signaling a significant movement. If 50 day SMA crosses below the 100 day SMA, the pair will decline breaking below the rising support trend line. If it rise above the 100 day SMA, the pair will surge breaking the resistance from 101.64 and the falling resistance trend line. 

" Downbeat Retail Sales data had no impact on the pair. According to the data : Retail Sales : Actual - .2% increase,  Forecast -  .6% increase

Core Retail sales : Actual - .4% increase, Forecast - .5% increase "

Investors would be looking for the fresh indications on the timing of interest rate increase after last week’s minute when fed revealed some new information about the interest rate increase.