The USD/JPY pair rallied today as the US dollar index has managed to jump higher after erasing today's sell-off. The pair maintains a bullish bias as it's located within an up-channel pattern.
DXY's upside continuation could help the price to climb towards new highs. Technically, the price action signaled an upside continuation after taking out an immediate resistance. Fundamentally, the greenback received a helping hand from the CB Consumer Confidence which was reported at 113.8, beating the 108.4 estimates. Moreover, the New Home Sales and the Richmond Manufacturing Index have come in better than expected as well.
On the other hand, the Japanese economic data was mixed. The BOJ Core CPI rose by 0.6% versus 0.3%, while the SPPI registered only a 0.9% growth even if the trades have expected a 1.1% growth.
USD/JPY Upside Still Intact!
USD/JPY is trading within the up-channel pattern, above the uptrend line. So, the bias is bullish. It has jumped above the immediate downtrend line signaling an upside continuation. Now, it has reached the weekly R1 (114.30) where it has found temporary resistance.
A temporary decline could help us search for new long opportunities from around the weekly pivot point and if it retests the uptrend line.
USD/JPY Forecast!
Stabilizing above the weekly R1 (114.30) could be seen as a fresh bullish opportunity. The upside continuation could be invalidated only by a valid breakdown below the uptrend line.
The material has been provided by InstaForex Company - www.instaforex.com