The USD/JPY pair rallied in the short term and now is trading at 140.06 at the time of writing. Despite the DXY's drop, the currency pair jumped higher as the Japanese Yen took a hit from the Yen Futures' drop. Technically, the USD/JPY pair maintains a bullish bias, but an upside continuation needs strong confirmation.
Fundamentally, the US CPI reported a 0.1% growth versus the 0.2% growth estimated, while Core CPI increased by 0.4% as expected. Tomorrow, the FOMC and the US PPI and Core PPI could be decisive.
USD/JPY Amazing Rally!
Technically, the USD/JPY pair failed to reach and retest the 138.80 static support announcing strong buyers. Now, it has passed above the downtrend line which represents a dynamic resistance.
Validating its breakout may announce further growth at least until the 140.24 former high. This represents a key resistance.
USD/JPY Outlook!
A bullish closure above 140.24 activates further growth. This is seen as a bullish signal.
