The USD/JPY pair rebounded after its massive drop. Now, it was trading at 133.36 at the time of writing. Technically, the current leg higher could be a temporary one. Actually, the price action developed a potentially bearish pattern. Still, we need confirmation before taking action.
Fundamentally, the Japanese Unemployment Rate came in at 2.5% today versus 2.6% as expected, Retail Sales reported only 2.6% growth compared to the 3.8% growth, Housing Starts dropped by 1.4% but specialists had expected 1.3% growth, while BOJ Core CPI registered 2.9% growth exceeding the 2.8% growth forecasted.
On the other hand, the US reported mixed data today. Tomorrow, the Japanese BOJ Summary of Opinions and the Prelim Industrial Production could bring some action in the early morning.
USD/JPY Swing Higher!
Technically, the USD/JPY rebounded and now it has reached the 133.61 historical level and the weekly pivot point of 133.60. As you can see, it has failed to stay below the uptrend line in the last attempts signaling strong upside pressure.
As long as it stays above the uptrend line, it could resume its growth. Still, its failure to come back to reach and retest the upside line signaled exhausted buyers.
USD/JPY Forecast!
A valid breakout through the 133.61 activates further growth. This could bring new long opportunities.
A valid breakdown below the uptrend line and through 133.14 could bring a short signal.
