The USD/JPY pair rebounded, but the bias remains bearish if it stays above the downtrend line. False breakouts could bring new drops. A valid breakout above the median line (ml) signals over the downside movement. The USD/JPY price rebounded in the short term as the US dollar found a slight traction after the corrective downside initiated last week. Unfortunately for the USD, the Dollar Index seems determined to resume its sell-off. -Are you interested in learning about forex indicators? Click here for details- As you already know, the DXY is in a corrective phase. A deeper drop could weaken the USD. On the other hand, the Yen Futures was in a rebound, but this could be only a temporary one as the bias remains bearish. Technically, the USD/JPY pair is in a corrective phase. A larger retreat needs strong confirmation. Now, the price moves sideways. Fundamentally, the US reported mixed data on Friday, while the Japanese Tokyo Core CPI came in worse than expected. Today, the US Banks will be closed in observance of Memorial Day. Tomorrow, the Japanese economic data could be decisive. The Unemployment Rate is expected to remain at 2.6%, Prelim Industrial Production may report a 0.1% drop, while the Retail Sales could register a 2.6% growth in April. In addition, the Consumer Confidence could jump from 33.0 points to 33.9 points, while the Housing Starts may report a 2.5% growth versus 6.0% in the previous reporting period. Get FREE Forex Signals Now! USD/JPY price technical analysis: Ranging From the technical point of view, the bias remains bearish as long as it stays under the downtrend line. Its failure to make a new lower low signaled that the sellers were exhausted. It has registered only false breakdowns below 126.94. Now, it could approach the downtrend line, which stands as a dynamic resistance. Testing the downtrend line, registering only false breakouts may signal more declines. -Are you interested in learning about the forex signals telegram group? Click here for details- On the other hand, making a valid breakout above the downtrend line and through the median line (ml) indicates that the corrective phase is over and that the USD/JPY pair could come back towards a 131.25 higher high. It has escaped from a minor triangle signaling strong upside pressure in the short term. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Majors share Read Next GBP/USD Price Pushing Lower After Fed Dashed Rate Hike Pause Saqib Iqbal 8 months The USD/JPY pair rebounded, but the bias remains bearish if it stays above the downtrend line. False breakouts could bring new drops. A valid breakout above the median line (ml) signals over the downside movement. The USD/JPY price rebounded in the short term as the US dollar found a slight traction after the corrective downside initiated last week. Unfortunately for the USD, the Dollar Index seems determined to resume its sell-off. -Are you interested in learning about forex indicators? Click here for details- As you already know, the DXY is in a corrective phase. A deeper drop could weaken the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.