USD/JPY Weekly Analysis 14 February 2017

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The Chinese inflation report showed an unexpectable increase of inflation rate by 2.5% from previous 2.1%. As well as the PPI (Producers Price Index) having risen by 6.9% from 5.5% of previous recording.

On the contrary, the UK’s inflation report printed out below expectations at 1.8% with expectations at 1.9%. The German inflation remained the same -0.6%, while Switzerland’s inflation rose from -0.1% to 0.0%

The German ZEW economic sentiment has showed a lack of confidence in the German businesses, which is evident with the 10.4 rank, lower than previously at 16.6.

The economic growth report from Germany showed a small adjustment by 0.4%, whilst the Eurozone’s economic growth report has showed that GDP was lower at 0.4% from the previous reading of 0.5%.

 

CHARTING

The crucial points are:

 

1

In the previous weekly session, the currency pair made many failed attempts to breach the 11.200 level of support, and has since risen, meeting heavy resistance at 113.700 level. This level also is shared with the upper band of the falling channel. Yesterday’s session close has formed an inverted hammer pattern, which usually is a negative reversal signal pattern.

Charting outcome: Marginally bearish – Neutral

INDICATORS (Computerized T.A)

The crucial points are:

2

 

3

 

The indicators are signaling that a weak downtrend has occurred, which is possible to become weaker. The moving averages slopes have become neutral, while the spread between the negative and the positive dynamic has tightened. The trend dynamic has fallen by -17.48%, whilst the market’s volatility has marginally fallen by -9.89%. Finally, the oscillators have passed into marginally oversold levels.

Indicators outcome: Marginally bearish – Neutral  

CONCLUSION

Indicators and charting are agreeing that the trend may follow a marginally bearish or neutral outlook. Should the price close lower than 111.700 level of support, the next support is possible to occur at 110.200 level. On the contrary, if the price reaches higher than 113.700 level, the next resistance could be the 115.100 level.

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