USD/JPY has rebounded and now is almost to reach the broken uptrend line. It could test and retest this line before resuming its decline. The pair dropped from an ascending channel, so the bias is bearish.
The pair has bounced back as the DXY and the JP225 have rebounded. The USD has appreciated a little even if the US Unemployment Claims have come in worse than expected yesterday.
The Final Wholesale Inventories will be released later today, but I don't believe that this indicator will bring anything new.
USD/JPY Validates Its Breakdown!
USD/JPY has increased a little which is natural and normal after its sell-off. It could retest the uptrend line soon if the JP225 (Nikkei) and the US Dollar Index will resume their growth.
A false breakout with great separation through the uptrend line or a major bearish engulfing printed on this dynamic resistance could signal a new leg down. Also, its failure to reach and retest the uptrend line could bring is a new short opportunity.
Forecast!
The current rebound could bring a new selling opportunity. We'll have a great selling opportunity if USD/JPY makes a new lower low, to drop below 109.53 yesterday's low.
