- The bias remains bullish as long as it stays above the uptrend line.
- The US data could bring high action later today.
- I’ve drawn a descending pitchfork, hoping to catch a new leg.
The USD/JPY price is trading in the red at 150.01. After the last rally, a downside correction was due. Still, the bias is bullish despite temporary retreats.
Yesterday, the price registered sharp movements in both directions, signaling an indecision. The DXY’s short-term retreat weakened the greenback, while the Japanese Yen Futures helped the Yen.
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Surprisingly or not, the price retreated even if the US reported positive economic data in the last trading session. Also, don’t forget that the ECB meeting had a big impact.
Today, the Tokyo Core CPI registered 2.7% growth, beating the 2.5% expected and the 2.5% growth in the previous reporting period.
Later, the US data should drive the markets. The Core PCE Price Index is expected to report 0.3% growth versus the 0.1% growth in the previous reporting period, while Revised UoM Consumer Sentiment could remain steady at 63.0 points.
Furthermore, Personal Income may report a 0.4% growth again, while Personal Spending could announce a 0.5% growth.
USD/JPY Price Technical Analysis: Downside Prevailing
From the technical point of view, the USD/JPY pair retreated a little, but the bias remains bullish as long as it stays above the uptrend line.
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The price action developed a potential rising wedge pattern, but the formation is far from confirmed. After its amazing upward movement, a corrective phase could be natural.
I’ve drawn a descending pitchfork, hoping to catch a new leg. Still, a potential larger correction could be activated only by a valid breakdown below the uptrend line and by the upper median line (UML) retest. Testing the uptrend line may announce new bullish momentum.
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