The USD/JPY pair registered a strong leg higher after failing to confirm a larger correction. It's trading at 130.92 at the time of writing and it seems determined to resume its growth. Still, it remains to see how it will react around the 130.00 psychological level.
As long as DXY resumes its growth, USD could dominate the currency market. On the other hand, JPY is weakened by the Japanese Yen Futures' drop. USD remains bullish after better-than-expected NFP. Today, the US is to release its Final Wholesale Inventories indicator which is expected to register a 2.3% growth.
On the other hand, JPY remains sluggish even if the Japanese Average Cash Earnings rose by 1.2% beating the 0.9% estimates.
USD/JPY Challenges Resistance!
USD/JPY found support below 129.10 - 129.40 support zone and right on the descending pitchfork's median line (ml). Nw, it challenges the upper median line (uml) which represents a dynamic resistance.
Validating its breakout through this obstacle may signal further growth. 131.00 and 131.25 serve as static resistance levels. False breakouts above the upper median line (uml) may signal a new sell-off.
USD/JPY Forecast!
Stabilizing above the upper median line (uml), testing and retesting this broken dynamic resistance could confirm further growth. This scenario could bring new buying opportunities. Also, a valid breakout above 131.25 could confirm potential growth towards the 132 psychological level.
