The USD/JPY pair is trading in the red at the time of writing and it seems very heavy. It’s trading at 144.57 at the time of writing, far below today’s high of 145.07. After its amazing growth, a corrective phase could be natural, the rate could come back down trying to accumulate more bullish energy. The bias remains bullish, so it’s premature to talk about a larger drop.
Fundamentally, the Japanese Housing Starts increased by 3.5% versus the 2.6% drop estimated, Unemployment Rate remained at 2.6% as expected, while Prelim Industrial Production and Tokyo Core CPI came in worse than expected.
On the other hand, the greenback lost significant ground versus its rivals in the last hours, even though the US reported mixed data. USD plunged after the Core PCE Price Index reported a 0.3% growth as expected. Now, the greenback tries to recover after today’s depreciation as the US Revised UoM Consumer Sentiment came in at 64.4 points above the 63.9 points forecasted.
USD/JPY Sellers In Charge!
Technically, the USD/JPY pair failed to approach and reach the channel’s upside line again indicating overbought levels and exhausted buyers. It has developed a potential Rising Wedge pattern, but it’s premature to talk about a corrective phase.
The rate invalidated the breakdown below the uptrend line, so the bias remains bullish. 144.12 stands as a critical downside obstacle. As you can see, the rate developed a minor flag pattern which could announce an upside continuation.
The weekly R1 (144.64) stands as a static resistance. Escaping from the minor flag pattern may announce a potential growth towards the 145.00 psychological level again.
USD/JPY Trading Conclusion!
A new selling opportunity could be confirmed only after making a new lower low. Dropping and closing below the uptrend line and under 144.12 activates a downward movement. This scenario is seen as a selling signal.
The material has been provided by InstaForex Company – www.instaforex.com
The USD/JPY pair is trading in the red at the time of writing and it seems very heavy. It’s trading at 144.57 at the time of writing, far below today’s high of 145.07. After its amazing growth, a corrective phase could be natural, the rate could come back down trying to accumulate more bullish energy. The bias remains bullish, so it’s premature to talk about a larger drop.
Fundamentally, the Japanese Housing Starts increased by 3.5% versus the 2.6% drop estimated, Unemployment Rate remained at 2.6% as expected, while Prelim Industrial Production and Tokyo Core CPI came in worse than expected.
On the other hand, the greenback lost significant ground versus its rivals in the last hours, even though the US reported mixed data. USD plunged after the Core PCE Price Index reported a 0.3% growth as expected. Now, the greenback tries to recover after today’s depreciation as the US Revised UoM Consumer Sentiment came in at 64.4 points above the 63.9 points forecasted.
USD/JPY Sellers In Charge!
Technically, the USD/JPY pair failed to approach and reach the channel’s upside line again indicating overbought levels and exhausted buyers. It has developed a potential Rising Wedge pattern, but it’s premature to talk about a corrective phase.
The rate invalidated the breakdown below the uptrend line, so the bias remains bullish. 144.12 stands as a critical downside obstacle. As you can see, the rate developed a minor flag pattern which could announce an upside continuation.
The weekly R1 (144.64) stands as a static resistance. Escaping from the minor flag pattern may announce a potential growth towards the 145.00 psychological level again.
USD/JPY Trading Conclusion!
A new selling opportunity could be confirmed only after making a new lower low. Dropping and closing below the uptrend line and under 144.12 activates a downward movement. This scenario is seen as a selling signal.
The material has been provided by InstaForex Company – www.instaforex.com
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