USD/JPY reached strong support and it could turn to the upside soon again. The pair was into a corrective phase after registering an amazing swing higher. The price actions signals that the pair could develop a new leg higher if the USDX and JP225 will jump higher.
Still, we have to wait for confirmation before jumping into a long position. BOJ maintained the Policy Rate at -0.10% as expected. The central bank sustained that it could take action by adding more stimulus measures if needed.
JP225 maintains a bullish outlook despite a temporary drop. The Yen could lose significant ground if the stock index will resume its growth. The US Consumer Confidence will be released in the afternoon and is expected to increase from 109.7 to 113.1. Better than expected data could boost the greenback in the short term.
We should now forget that the FOMC meeting takes place on Wednesday. The FED is expected to keep its current monetary policy.
USD/JPY Upside Reversal!
USD/JPY has found support below the 38.2% retracement level and right on the uptrend line. Now is traded above the weekly pivot but the 108.33 remains a strong static resistance, support turned into resistance.
It has escaped from the minor down channel signaling strong buyers around this support zone. Still, it could decrease a little to test and retest the immediate support levels before jumping higher.
Forecast!
USD/JPY bounced back from a support area, a new higher high, bullish closure above 108.38 could bring a new long opportunity. Also, a false breakdown through the weekly pivot (108.05) or below the uptrend line could signal a new upside momentum.
Failing to approach and reach the descending pitchfork's median line (ml) could signal a new swing higher towards the upper median line (uml).
