- The bias is bullish despite the last retreat.
- The Canadian data could have an impact on the USD.
- A new higher high activates further growth.
The USD/JPY price edged lower in the short term, but the outlook remains bullish. After a brief pullback from their recent rally, the pair may find new buyers.
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The better-than-expected US Unemployment Claims and Revised Unit Labor Costs data yesterday supported the US dollar, which showed a healthy labor market and rising productivity.
Today, the market was influenced by several economic indicators from Japan, which showed mixed results. The Japanese Economy Watchers Sentiment and Final GDP missed the forecasts, indicating weaker consumer confidence and economic growth.
However, the Final GDP Price Index, Current Account, and Bank Lending beat the expectations, suggesting higher inflation, trade surplus, and credit growth. These data caused some volatility in the pair but did not change the overall trend.
Later today, the market will also pay attention to the Canadian data, which could also affect the US dollar. The Canadian Unemployment Rate, Employment Change, and Capacity Utilization Rate will be released, which could reflect the state of the Canadian labor market and industrial sector.
USD/JPY price technical analysis:
The USD/JPY pair retreated after facing resistance at the 147.80 level, a previous high. It almost reached the 146.56 level, which is a key support level. However, it has bounced back and could test the median line (ml) of the ascending pitchfork again.
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This is a dynamic resistance level; the pair’s reaction may determine the next direction. The 147.80 level is a static resistance level that could cap the upside. The pair remains in an uptrend as long as it stays above 146.56.
The fact that it did not break below this level suggests that the bulls are still in control. A new higher high, above 147.80, could signal more gains for the pair.
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