The USD/JPY pair is strongly bullish and it seems determined to hit new highs. It's located at 147.63 at the time of writing, far above today's low of 147.01. The Dollar Index's upside continuation forced the USD to drag the pair higher. On the other hand, the Japanese Yen is bearish as the Yen Futures are bearish.
Fundamentally, the USD rallied as the US ISM Services PMI was reported at 54.5 points above 52.5 expected, IBD/TIPP Economic Optimism jumped from 40.3 to 43.2 above 41.1 expected, while Trade Balance came in at -65.0B versus -67.9B forecasts. Furthermore, the BOC maintained the Overnight Rate at 5.00% as expected.
USD/JPY 147.80 As Resistance!
Technically, the rate retreated a little after failing to stabilize above the weekly R1 (147.60) in the last attempts.
The bias remains bullish as long as it stays above the median line (ml) of the ascending pitchfork. The rate failed to retest this dynamic support signaling strong upside pressure.
USD/JPY Outlook!
The former high of 147.80 stands as a key resistance. Jumping and closing above it is seen as a buying opportunity.
