The USD/JPY pair is moving sideways and it seems undecided. It's located at 149.57 at the time of writing and is fighting hard to stay higher even if the Dollar Index remains under strong downside pressure. Still, the price stays near the immediate high of 149.73 only because the JPY is weakened by the Japanese Yen Futures' drop.
Today, the Yen took a hit also from the Japanese National Core CPI and from the Flash Manufacturing PMI as the indicators came in worse than expected. Later, the US data should really shake the price. The Flash Manufacturing PMI and Flash Services PMI represent high-impact events. Poor data should weaken the greenback while positive figures could boost the USD.
USD/JPY Triangle Pattern!
The USD/JPY pair is trading sideways and is trapped within a triangle pattern. After the strong rally, temporary retreats were natural as the rate needed to accumulate more bullish energy before jumping higher.
You knew from my previous analysis that the USD/JPY pair announced an upside reversal after escaping from the down-channel pattern.
USD/JPY Outlook!
Dropping below the minor uptrend line activates a downside movement and brings us new short opportunities.
On the other hand, as long as it stays above the uptrend line, the bias is bullish. Taking out the 149.75 and 149.99 resistance levels activates further growth.
