USD/JPY has been in an impulsive bullish trend recently which has recently broken above the 112.50 resistance level. The price is currently impulsively bullish due to recent USD positive economic reports published. Today JPY Monetary Base report was published with worse value of 15.6% from the previous value of 16.3% which was expected to increase to 17.3%, BOJ Core CPI report showed increase to 0.6% from the previous value of 0.4% and Consumer Confidence report was published with an increase to 43.9 from the previous figure of 43.3 which was expected to be at 43.5. JPY has been quite mixed with the economic reports today which did quite help the currency to gain over the USD gains till now. On the USD side, today FOMC Member Powell is going to speak regarding the national key interest rates and future monetary policies whereas the event is expected to neutral in nature and Total Vehicle Sales report is expected to show an increase to 16.9M from the previous figure of 16.1M. As of the current situation, if USD report and event comes up with positive results then it is expected that the bullish momentum will gain strength and push the price further up in the coming days.
Now let us look at a technical view, the price is currently residing in a big corrective structure which started since April 2017. Currently, the price is residing in impulsive bullish pressure breaking above the 112.50 which is expected to progress towards 114.30-1115.40 resistance area in the coming days. We might see some corrective price action along the way towards the resistance area, but it would be interesting to see how the price reacts after reaching the resistance area.
