USD/JPY has decreased a little to retest the immediate support level before jumping higher. The outlook remains bullish despite the last drop. US Dollar Index's growth after the US data could push USD/JPY higher.
The pair is trading far above the immediate uptrend line, so we could still search for new buying opportunities. The US ISM Services PMI is expected to increase from 62.7 to 63.0, the Unemployment Claims could drop from 406K to 400K in the last week, while the ADP Non-Farm Employment Change could increase to 645K.
In line with expectations data today could send the DXY high. Also, tomorrow, analysts expect the US Unemployment Rate to drop from 6.1% to 5.9%, while the NFP could be reported at 645K.
USD/JPY Upside Breakout?
USD/JPY has found strong support below the weekly pivot point (109.52). It has retested this level and now is it approaches 109.88. Jumping and closing above this static resistance could signal further growth.
Failing to reach and retest the uptrend line indicates that the bulls are strong. USD/JPY could extend its growth towards the R1 (110.49) and up to the upper median line (uml).
Outlook!
A bullish closure above 109.88 on the H4 chart could announce an upside continuation at least until the 110.19 level. The upside scenario could be invalidated by a new drop below the weekly pivot.
