The USD/JPY pair rallied since yesterday and at the moment of writing it is trading at 143.16. It has climbed as high as 143.43 today, where it has found resistance. Dollar Index's rally forced the USD to appreciate versus its rivals. Technically, the price reached a resistance zone, so a bearish pattern may announce a new sell-off.
Today, the Japanese economic data came in mixed. Economy Watchers Sentiment came in at 54.4 points above 54.0 points expected, Current Account was reported at 2.35T versus 2.24T estimates, while Average Cash Earnings reported a 2.3% growth, less compared to 3.0% growth forecasted. Furthermore, Bank Lending and Household Spending came in worse than expected as well.
Unfortunately for the USD, the US data came in mixed today. Fundamentally, the most important event of the week is represented by the US inflation data publication. The CPI and Core CPI data will be released on Thursday. Higher inflation could help the greenback dominate the currency market.
USD/JPY minor range
From the technical point of view, the price stands right below the upper median line (uml) of the descending pitchfork. This represents a dynamic resistance. The 143.43 and the R1 of 143.48 represent upside obstacles as well.
In the short term, it's trapped between 143.43 and 142.83 levels. Escaping from this minor range pattern should bring us new opportunities.
USD/JPY forecast
A bullish closure above the R1 (143.48) activates further growth and is seen as a buying opportunity.
A bearish closure below 142.83 opens the door for more declines.
