- The bias remains bullish despite temporary retreats.
- A new higher high may announce further growth.
- The US data could bring high action later today.
The USD/JPY price registered strong growth and is trading at 144.70 while writing. The pair retreated a little after reaching 144.89 today’s high.
The US dollar appreciated amid mixed economic data reported yesterday. On the other hand, the Japanese Yen lost significant ground against its rivals.
Fundamentally, the US CPI m/m and Core CPI m/m matched expectations, while CPI y/y came in worse than expected. Furthermore, the Unemployment Claims jumped unexpectedly higher, from 227K to 248K, above the 231K expected.
Today, Japanese banks are closed in observance of Mountain Day. However, the liquidity is intact due to Greenback’s momentum.
The United States PPI and Core PPI indicators reported a 0.3% growth each, versus only 0.1% growth in the previous reporting period. In addition, the Prelim UoM Consumer Sentiment dropped to 71.2 points from 71.6 points.
The upbeat PPI figures pushed the pair higher. However, the gains didn’t sustain near the daily peak.
USD/JPY Price Technical Analysis: Bullish Bias
Technically, the pair was near to hit the 145.07 historical high which represents a key static resistance level. Now, it has retreated a little and it challenges the median line (ml). This stands as a dynamic support.
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As long as it stays above it, the price could approach new highs. Dropping and stabilizing below it may announce a larger retreat in the short term. The 144.00 psychological level could represent a potential target if the rate continues to drop.
The bias remains bullish despite minor retreats. Yesterday’s false breakdown with great separation below the weekly R1 (143.48) announced strong upside pressure. A new higher high and taking out the 145.07 activates further growth ahead.
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