Sasha Singh
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USDJPY : Extending Losses But Still Seems Supported

USDJPY is plunging today on the daily chart extending its previous losses. Japanese Yen gained some strength after the Japanese Economics Minister Akira Amari said in Parliament that the government is not intentionally weakening the currency and it is important to consider the impact of rising import prices.

On the other hand US dollar weakened against its major counterparts today after the release of US economic data. The official data showed that U.S. Retail Sales fell .3% last month more than the economist’s expectation for a decline of .1%. Core retail sales which excludes automobiles declined by .2% last month missing the economist’s expectation for a gain of .3%. A separate report showed that U.S. producer price inflation slipped .1% last month missing the expectations for an increase of .1% rise.

USDJPY : Daily Chart

The pair declined below the support at 106.72, however it is still supported by a rising support trend line which might again prevent the pair to decline below it. The moving average pattern on the chart is still signaling an uptrend continuation.

USDJPY : 4 Hour Chart

On the 4 hour chart, the pair seems like following a downtrend channel and might find support from the falling support trend line of the channel. There is another support at 105.99 which will prevent it in declining further.