USD/JPY is trading in the green at the 105.11 level and it flirts with resistance again after the most recent drop. The yen could lose ground again versus the greenback if the JP225 and the USDX jumps higher.
USD remains strong despite poor US inflation data. The CPI and the Core CPI increased only by 0.0%, less than expected. It remains unclear how the US dollar will react to the data on PPI, Core PPI, and the Prelim UoM Consumer Sentiment released today.
USD/JPY Needs A Valid Breakout
USD/JPY has decreased a little after another false breakout above the downtrend line, Falling Wedge's resistance. It has slipped under the median line (ml) of the ascending pitchfork, but now it is trying to come back above it.
The decline could be only a temporary one if the rate continues to stay near the immediate upside obstacles. Still, USD/JPY could decrease in the short term if the price registers only false breakouts above the median line (ml) and through the major downtrend line.
- USD/JPY Trading Conclusion
Well have a great long opportunity if USD/JPY makes a valid breakout above the downtrend line and after making a new higher high, to close above 105.67. This scenario will signal a broader leg higher. The first upside target is seen around the 107.00 psychological level.
