The USD/JPY pair rallied in the short term and now is trading at 140.77. It has erased the latest gains and now it seems poised to jump higher as the Dollar Index is strongly bullish after yesterday's US economic data.
The JPY lost ground versus the USD as the BOJ maintained the BOJ Policy Rate at -0.10% as expected. On the other hand, the US Revised UoM Consumer Sentiment, Employment Cost Index, and Personal Income came in worse than expected. Personal Spending came in better than expected, while Core PCE Price Index matched expectations.
USD/JPY Rallied Post BOJ!
Technically, the price registered sharp movements in both directions before and after the BOJ. It has failed to come back down towards the 137.42 former low signaling upside pressure.
The median line (ml) of the ascending pitchfork and 141.31 represent upside obstacles and targets.
USD/JPY Outlook!
Jumping and closing above 141.31 and above the median line (ml) confirms more gains and is seen as a buying opportunity.
