USD/JPY Price Turns Bullish in the Wake of Strong NFP

• The USD/JPY pair could approach and reach new highs as long as it stays above the lower median line (LML).
• The US NFP, Average Hourly Earnings, and Unemployment Rate should bring high action.
• The weekly pivot point represents the first target.

The USD/JPY price turned upside on Friday and is now trading at 131.87. Fundamentally, the greenback dropped in the short term as the US reported poor data during the week.

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The ISM Manufacturing PMI, JOLTS Job Openings, ADP Non-Farm Employment Change, ISM Services PMI, and Unemployment Claims came in worse than expected.

Today, the Japanese Yen took a hit from the Japanese economic figures. Average Cash Earnings rose by 1.1% less versus the 1.2% growth expected, while Household Spending reported a 1.6% growth versus the 4.9% growth estimated.

Later, the US economic figures should be decisive. The Non-Farm Employment Change is expected at 228K versus 311K in the previous reporting period. The unemployment rate could remain at 3.6%, while Average Hourly Earnings may report a 0.3% growth in March versus the 0.2% growth in February.

In addition, the Consumer Credit could be reported at 18.3B above 14.3B in the previous reporting period. Better-than-expected US figures should boost the greenback, so the USD/JPY pair could develop a significant rebound. On the contrary, poor US data can weaken the greenback.

USD/JPY Price Technical Analysis: Bullish Flag Pattern

The USD/JPY pair found strong support on the major ascending pitchfork’s lower median line (LML). Now it has turned to the upside. It has tested this dynamic support, registering only false breakdowns.

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As you can see from the 4-hour chart, the price failed to stay below the down channel’s downside line. Now, it challenges the downtrend line, and taking out this dynamic resistance may announce further growth.

Technically, the currency pair could approach and reach at least the former highs as long as it stays above the lower median line (LML). The weekly pivot point of 132.24 stands as the first upside target. The upside scenario could be invalidated after making a valid breakdown below the lower median line (LML).

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