- The US economic figures could bring sharp movements today.
- The current range represents an upside continuation pattern.
- Only a new lower low invalidates more gains.
The USD/JPY price continues to move sideways in the short term. The pair retreated as the US dollar was in a corrective phase, and the Yen registered a temporary rebound.
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Fundamentally, the pair remains bullish even though the US Unemployment Claims came in worse than expected. The economic indicator was reported at 219K versus 190K in the previous reporting period.
You already know the USD received a helping hand from the ADP Non-Farm Employment Change and ISM Services PMI, which came in better than expected on Wednesday.
Today, the Japanese Leading Indicators indicator was reported at 100.9% above the 99.2% expected. Household Spending reported a 5.1% growth less versus the 6.8% expected, while Average Cash Earnings surged by 1.7%, beating the 1.4% forecast.
Later, the US data could be decisive and could bring sharp movements. The NFP is expected at 248K in September. Unemployment Claims could remain at 3.7%, while the Average Hourly Earnings may report a 0.3% growth.
Don’t forget that the Canadian Employment Change and Unemployment Rate could also have an impact. Better than expected, data could help the USD to dominate the currency market.
USD/JPY price technical analysis: Sideways movement
As you can see on the hourly chart, the price continues to move sideways between the 143.90 and 144.99 levels. It has registered false breakouts on both sides. The USD/JPY pair extended its range. However, most likely, it will register sharp movements after the Non-Farm Payrolls publication. The bias remains bullish, though it remains to see how it will react around the 144.99 key resistance. The 145.90 is seen as a major upside target.
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From the technical point of view, the current accumulation could represent an upside continuation pattern. Only a new lower low, dropping and closing below 143.52, could activate a larger drop and invalidate an upside continuation.
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