The USD/JPY pair registered a strong growth lately and now is located at 144.43. The bias is bullish, so an upside continuation is favored. Still, after its amazing rally, temporary retreats are natural. The price could try to test and retest the near-term support levels before jumping higher.
Fundamentally, Japanese Retail Sales reported a 5.7% growth versus the 5.2% growth estimated, while Consumer Confidence came in line with expectations at 36.2 points. Later, the US data could really shake the price. Positive data reported by Final GDP, Unemployment Claims, Final GDP Price Index, and Pending Home Sales should boost the USD.
Tomorrow, Japan is to release the Unemployment Claims, Tokyo Core CPI, Prelim Industrial Production, and Housing Starts, while the US publishes the Chicago PMI, Revised UoM Consumer Sentiment, Personal Spending, and Personal Income figures.
USD/JPY Upside Continuation!
From the technical point of view, the USD/JPY pair is bullish as long as it stays above the uptrend line, within the up channel pattern. It has found resistance at the weekly R1 (144.64). This was seen as an upside obstacle.
After its strong rally, temporary drops are natural. It could test and retest the uptrend line and the 143.86 static support.
USD/JPY Outlook!
Testing and retesting the uptrend line should announce a new bullish momentum. This is seen as the first long opportunity. Also, a bullish closure above the R1 (144.64) represents a new buying signal.
