Technical analysis of USD/JPY for May 15, 2015 Market Analysis Review

USD/JPY

Unemployment insurance weekly claims: In the week ending May 9, the advance figure for seasonally adjusted initial claims was 264,000, a decrease of 1,000 from the previous week's unrevised level of 265,000. The 4-week moving average was 271,750, a decrease of 7,750 from the previous week's unrevised average of 279,500. This is the lowest level for this average since April 22, 2000 when it was 266,750.

Producer price index - April 2015

The Producer Price Index for final demand fell 0.4 percent in April, seasonally adjusted, the US Bureau of Labor Statistics reported yesterday. Final demand prices moved up 0.2 percent in March and decreased 0.5 percent in February. On an unadjusted basis, the index for final demand declined 1.3 percent for the 12 months ended in April.

USD/JPY

USD has been softening in the recent days. In the lot of USD related pairs, the USD is trading higher against JPY. The recent USD rally against JPY, CAD, SGD, and CHF failed the bullish view in the near term. But only this pair has been sustaining in the structural bullish view. As we expected yesterday, before the price inches above 120.30, it is likely to retest 119.60 and 119.40 today. So, we might see the sub-level at 119.00. The pair made a low at 118.89. The real problem for bulls is found at 118.50 100Dema. The pair is likely to make a double bottom at 118.50 and 118.30. At yesterday's session, we initiated buying in case if we see the pair around 119.00. Buying between 119.00 and 118.60 sl 118.50 closing basis or 118.30 intraday. For today's session, we expect strong momentum above 119.70 towards 120.00 and 120.25 initially. In case of a daily close above 120.85, bulls will aim at 122.00. We have been recommending the same target for a while, but not met yet. Buying above 119.70 is advised anyone who joins bulls' party.

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