The USD/JPY pair is strongly bullish in the short term, so the bias remains bullish despite temporary retreats. The Japanese Yen lost significant ground versus its rivals as the Yen Futures dropped. The currency pair is trading at 142.17 at the time of writing, right below 142.36 today's high.
Yesterday, the US and Japan reported positive economic data. Today, the Japanese Monetary Policy Meeting Minutes failed to save the Yen from the downside. The Fed Chair Powell Testifies represented a high-impact event, that's why the volatility is huge in the short term. Jerome Powell confirmed that the FED could continue hiking rates in the next monetary policy meetings.
Tomorrow, the SNB and BOE could have an impact on the USD/JPY pair as well. The US is to release the Unemployment Claims, Current Account, Consumer Confidence, Existing Home Sales, and CB Leading Index. Better than expected US data should lift the greenback.
USD/JPY Strong Upside Pressure!
From the technical point of view, the bias remains bullish as long as it stays above the uptrend line. The historical level of 142.25 represents a static resistance. Staying near this upside obstacle may announce an imminent breakout and continuation.
After escaping from the former major triangle pattern, the currency pair was expected to jump higher.
USD/JPY Outlook!
A valid breakout above 142.25, a bullish closure above today's high of 142.36 is seen as a new bullish signal.
