The USD/JPY pair rallied in the short term reaching 134.10. Still, the upwards movement could be only temporary. The rate could test and retest the near-term resistance levels before turning to the downside again. It's located at 134.03 and it seems determined to pressure the immediate upside obstacles.
Surprisingly or not, the USD rallied in the short term even if the US Advance GDP reported only a 1.1% growth versus the 2.0% growth estimated and versus 2.6% growth in the previous reporting period. Still, the US reported mixed data as the Unemployment Claims and the Advance GDP Price Index came in better than expected.
Tomorrow, the BOJ Outlook Report, Monetary Policy Statement, and BOJ Press Conference should really shake the price. Furthermore, the US Employment Cost Index and Core PCE Price Index could bring more action.
USD/JPY Rebound!
Technically, the USD/JPY pair rallied after failing to stay below the weekly S1 (133.38). The false breakdown with great separation below the S1 announced strong upside pressure.
Now, it challenges the 133.91 static resistance and the upper median line (UML). In the short term, the price dropped within a down channel pattern. As long as it stays below the upper median line, the USD/JPY pair could develop a new sell-off.
USD/JPY Forecast!
False breakouts above the upper median line (UML) may announce a new downside movement and selling opportunities. A larger downside movement should be activated by a bearish closure below 133.01.
On the other hand, closing above the upper median line (UML) and above the weekly pivot point (134.26) activates further growth and invalidates the downside scenario. This could bring new long signals.
