The USD/JPY pair is trading at 128.19 at the time of writing. As you already know from my previous analysis, the currency pair developed an ascending channel which could represent a bearish pattern.
Fundamentally, the Japanese Yen received a helping hand from the Japanese SPPI today. The indicator rose by 1.3% exceeding the 1.2% estimates and the 1.1% growth in the previous reporting period.
In the short term, the USD/JPY pair signaled that the buyers are exhausted. Tomorrow, Japan is to release its BOJ Core CPI and the Unemployment Rate, while the US is to release the CB Consumer Confidence, Durable Goods Orders, and the Core Durable Goods Orders.
USD/JPY Up Channel!
USD/JPY registered only false breakouts above the channel's upside line and above the 128.70 signalings that the bulls are exhausted and that the sellers could take full control. Now, it challenges the uptrend line and the weekly pivot point (128.04).
A valid breakdown from this up channel could signal that the USD/JPY pair could develop a corrective phase. Staying above the uptrend line and registering only false breakdowns may signal new bullish momentum.
USD/JPY Forecast!
Staying below the descending pitchfork's upper median line (uml) and making a new lower low, dropping and closing below 127.73 could open the door for a larger drop and could bring fresh short opportunities with a potential downside target at the S1 (126.67).
