USD/JPY increased as much as 114.51 today where it has found resistance. The bias remains bullish, the currency pair could approach and reach new highs as long as it stays in the buyer's territory.
Though, it remains to see how it will react in the short term after reaching a dynamic resistance. The pair extended its growth as the Japanese Yen Futures' sell-off weakened the Yen. Fundamentally, the Japanese Housing Starts printed a 3.7% growth, SPPI rose by 1.1% versus 1.0% expected, while the National Core CPI increased by 0.5% beating the 0.4% expected.
As you already know, the US banks will be closed in Observance of Christmas Day. Today, the trading volume will be very low, so USD/JPY could change only a little till next week.
USD/JPY Below Dynamic Resistance!
USD/JPY found resistance at the up channel's resistance again and now could come back to test and retest the weekly R1 (114.27). As long as it stays above this level, USD/JPY could still resume its upwards movement.
A minor accumulation above this level may announce an upside continuation towards the upper median line (UML). Dropping and stabilizing below 114.27 may announce a potential drop towards 113.95 static support.
USD/JPY Outlook!
The USD/JPY pair maintains a bullish bias despite a temporary decline. A new higher high, a bullish closure above 114.51 today's high, a valid breakout above the up channel's upside line may signal a sharp growth.
Also, sideways trading above the 114.27 could bring a new long opportunity as well with a potential upside target at the upper median line (UML).
