USD/JPY is trading lower in the short term, but the bias remains bullish. This could be only a temporary decline before jumping higher again. The Japanese Average Cash Earning increased by 1.9% below 2.1% expected, while the Household Spending increased by 11.6% exceeding the 10.9% forecast.
The ISM Service PMI dropped to 60.1 from 64.0 points, far below the 63.4 estimates. Also, the Final Services PMI disappointed as well by dropping from 64.8 to 64.6 points.
USD/JPY Decline Could Be Over Soon!
USD/JPY is trading in the red right now at 110.62 level and it could come back to retest the 150% Fibonacci line. This line is seen as a dynamic support. Also, the weekly S1 (110.40) and the uptrend line are seen as major and critical downside obstacles.
We could look for long entries around these levels. Actually, we have a strong confluence area at the intersection of these levels.
Trading Conclusion!
False breakdowns through the immediate support levels or any other bullish pattern around these obstacles could bring us a new long opportunity. It is hard to believe that USD/JPY could drop further without printing a rebound.
