On the USDJPY we broke out of the down trend channel a couple of weeks ago and tried to break out, but what might have caught people out was by retesting the previous down trend line. This held however last week and we saw a strong rejection of this level. Since then, we have rallied back pretty convincingly to back above the 99.00 level.
MACD crossed over the 0 line confirming the up move.
Next resistance is 99.96 indicated on the chart, but the one we are most interested in and potentially much stronger is 101.53. We also have a Fibonacci projection of the 12th -23rd August rally of 101.15. The key resistance levels to which out for are a previous high of 99.15 and yesterdays Marabuzo's candlestick line at 98.90, as long as these hold, we should expect higher numbers to come.
On the fundamental side, yesterday we saw data published from Japan, that their's capital spending was flat for QoQ beating an estimate of -2.00%. Again this morning we had a data release that Japanese's monetary base increase to 42.00% beating an estimate of 41.3%, weakening the currency further.
Charts sourced from ig.com
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