The USD/JPY pair edges higher as the Dollar Index has managed to reach new highs while the Japanese Yen Futures plunged. The currency pair was into a minor corrective phase. The price action signaled that the downside movement is over and that the USD/JPY pair could resume its uptrend.
Fundamentally, USD received a helping hand from the US data. The Retail Sales registered a 1.7% growth in October versus 1.3% expected and compared to 0.8% in September, while the Core Retail Sales rose by 1.7% beating the 1.0% estimates.
Furthermore, the Industrial Production increased by 1.6% versus 0.9% expected and after a 1.3% drop in the previous reporting period, while the Capacity Utilization Rate was reported at 76.4% above 75.9% expected.
USD/JPY strongly bullish
USD/JPY dropped after escaping from the upward channel pattern. Its failure to approach and reach the 38.2% retracement level signaled that the corrective phase could be over.
Jumping and stabilizing above the downtrend line followed by an aggressive breakout through 114.27 signaled an upside continuation. 114.69 stands as the immediate upside obstacle.
USD/JPY forecast
Its breakout through 114.27 static resistance, registering a new higher high confirmed further growth. Making a valid breakout through 114.69 former high could activate an upside continuation and could bring new long opportunities.
