The USD/JPY pair rebounded after its amazing sell-off. Still, the rebound could be only temporary. The price action developed a potentially bearish pattern, so a new bearish momentum is in cards.
Fundamentally, the Japanese National Core CPI rose by 3.7% matching expectations. Later today, the US is to release important economic figures. So, the fundamentals could really shake the markets. Core PCE Price Index is seen as a high-impact event and could report a 0.2% growth. Personal Income, Personal Spending, Durable Goods Orders, Core Durable Goods Orders, New Home Sales, and Revised UoM Consumer Sentiment will be released as well.
USD/JPY Up Channel!
Technically, the rate developed an up-channel pattern. As long as it stays above the minor uptrend line, the rate could approach and reach new highs. Now, it challenges the weekly S1 (132.78) static resistance (support turned into resistance).
The 132.90 former high represents an upside obstacle as well. On the other hand, 132.14 stands as static support.
USD/JPY Forecast!
The USD/JPY pair could resume its growth if it jumps and closes above 132.90. This is seen as a buying signal. The channel's upside line represents an upside target.
Dropping below 132.14 activates a sell-off and brings new short opportunities.
