- The bias remains bullish after failing to take out the former low.
- A new higher high activates further growth.
- The US data could change the sentiment in the next two days.
The USD/JPY price turned to the upside, trading at 149.08 at the time of writing. The greenback took the lead again as the Dollar Index rebounded while the Japanese Yen Futures slumped.
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Yesterday, the US and Japanese banks were closed. Today, the Japanese Yen took a hit from the Japanese economic data. The Current Account came in at 1.63T versus the 2.41T expected and compared to 2.77T in the previous reporting period. At the same time, Economy Watchers Sentiment dropped from 53.6 points to 49.9 points, far below 53.2 points expected.
On the other hand, the NFIB Small Business Index was reported at 90.8 points below the 91.1 points forecasted. Later, the Final Wholesale Inventories may report a 0.1% drop. Also, the FOMC Member Waller, FOMC Member Kashkari, and ECB President Lagarde’s speeches could have an impact as well.
Tomorrow, the FOMC Meeting Minutes, PPI, and Core PPI will act as high-impact events and could change the sentiment. Also, the US is to release the inflation figures on Thursday. Positive US figures should boost the greenback, which could dominate the currency market again after the current correction.
USD/JPY Price Technical Analysis: Leg Higher
Technically, the currency pair is trapped between 149.33 and 148.25 levels. Escaping from the major up channel signaled a downside reversal. Still, the rate failed to take out the former low of 148.25, signaling exhausted sellers.
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The false breakdown invalidated more declines (downside reversal). It’s almost to hit the 149.21 – 149.33 static resistance levels. A new higher high may announce an upside continuation towards the 150.00 psychological level.
Falling to make a new higher high, a false breakout above the immediate resistance levels could announce a new sell-off inside the current range.
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