The USD/JPY pair rallied today and now is trading at 114.89, far above today's low of 114.31. It has registered a 0.53% growth from today's low to today's high of 114.91 . The Japanese Yen Futures amazing sell-off forced the Yen to depreciate versus other currencies, that is why the USD/JPY pair rallied.
Fundamentally, the Japanese Retail Sales registered a 1.9% rise in November versus 1.8% expected and compared to 0.9% in October. The pair ignored this positive data and now has almost reached the 115.00 psychological level.
Tomorrow, the Japanese Unemployment Rate, Prelim Industrial Production, and the BOJ Core CPI could bring high action.
USD/JPY Sharp Growth!
As you already know from my analysis posted on Friday, the USD/JPY was expected to resume its growth as long as it stays above 114.27. I've told you that a breake above the channel's upside line may signal sharp growth.
It is located above the weekly R1 (114.79) and above the upper median line (UML). Stabilizing above these broken levels may signal an upside continuation. In the short term, we cannot exclude a temporary consolidation or a minor retreat.
USD/JPY Forecast!
A minor consolidation, retesting the upper median line (UML) could confirm further growth and could bring new long opportunities. In my opinion, the upside scenario could be invalidated by USD/JPY's failure to stay above the weekly R1 (114.79) and above the upper median line (UML).
