The US Dollar recently traded higher against the Japanese Yen, but failed near an important confluence resistance area. There is a confluence area formed near a major bearish trend line on the hourly chart of the USDJPY pair, as the 100 and 200 simple moving averages are also positioned around it. Moreover, the 120.30 level is a pivot area acting as a hurdle for buyers. In short, it won’t be easy for buyers to take the pair higher and clear the trend line and resistance area.
On the downside, there is a double bottom pattern noted around the 119.65 level. So, there are mixed signals on the hourly chart, suggesting that the pair might trade anyway moving ahead and one should trade with caution.
Earlier during the Asian session, the Chinese Caixin China Services PMI™, which is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies was released by Markit Economics. The market was expecting an increase from the last reading of 47.3 to 47.5 in September 2015. The outcome was a negative one, as there was a decline noted to 47.0.