The currency pair is located at 148.95 at the time of writing. After such an impressive rally, we cannot exclude a temporary drop. Still, a correction needs strong confirmation as the bias is bullish.
Fundamentally, the Yen was lifted by the Japanese data today. The BOJ Core CPI and the SPPI came in better than expected. Later, the US CB Consumer Confidence and the New Home Sales represent important events and could bring sharp movements. The indicators are expected to report poor figures compared to the previous reporting period. Poor data could weaken the USD.
USD/JPY Retests Sellers!
As you can see on the H1 chart, the price action developed a Rising Wedge pattern. The rate failed to take out the R2 (149.18) and now it has dropped below the uptrend line.
The R1 (148.77) and the 148.72 former low represent downside obstacles. USD/JPY could resume its growth as long as it stays above these levels.
USD/JPY Outlook!
Dropping and closing below 148.72 is seen as a selling signal.
