The USD/JPY pair is moving sideways in the short term. It's located at 147.63 at the time of writing. After its massive sell-off, the price could try to bounce back. Still, a new leg higher needs confirmation. The rate extended its downward movement after the US CB Leading Index reported a 0.8% drop versus the 0.5% drop expected.
Today, the US Existing Home Sales came in worse than expected, at 3.79M far below the 3.90M estimated. Still, the FOMC Meeting Minutes could change the sentiment later today.
USD/JPY: 147.32 Stops Sell-Off!
Technically, the USD/JPY pair dropped within a down-channel pattern. It has found strong support on 147.32. It has registered false breakdowns with great separation below this downside obstacle. Now it is trying to develop a bullish momentum.
It's trapped between 147.83 and 147.32 levels in the short term. It has retested the broken minor downtrend line and it seems determined to jump higher.
USD/JPY Outlook!
A bullish closure above 147.83 activates more gains in the short term. This is seen as a buying opportunity.
