The USD/JPY pair changed little in the short term after registering strong growth. It closed the week at 147.44. The price rallied in the short term as the DXY rebounded while the Japanese Yen Futures dropped.
As you already know, the Yen remains bearish as the BOJ maintained the BOJ Policy Rate at -0.10% as expected. Bank of Japan is expected to keep the rate in the negative territory in the next monetary policy meetings as well.
Fundamentally, Japanese Retail Sales could report a 4.0% growth, Prelim Industrial Production could drop by 0.8%, Housing Starts could announce a 2.6% drop, and Consumer Confidence could be reported at 31.0 points. Worse-than-expected data could force the Yen to lose more ground versus its rivals.
USD/JPY Validates Its Breakout!
As you can see on the H1 chart, the pair found support after reaching the 144.96 - 145.90 zone. It has turned to the upside and now it stands above the downtrend line which represented a dynamic resistance.
The broken downtrend line and the ascending pitchfork's lower median line (lml) represent support levels. Also, 146.93 stands as a downside obstacle.
USD/JPY Outlook!
A new higher high, a valid breakout above 147.86 confirm further growth as long as it stays within the ascending pitchfork's body. This scenario brings long opportunities.
