USD/JPY is traded at 113.88 level far above 113.39 today’s low. DXY’s rally after yesterday’s sell-off forced the USD to take the lead again. Also, the Yen is still vulnerable as the Japanese economic data disappointed.
On the other hand, the US economic data have come in mixed. The Core PCE Price Index rose by 0.2% matching expectations, while the Employment Cost index increased by 1.3% beating 0.9% expected. The Personal Income dropped more than expected, while Personal Spending has come in line within expectations.
Later, the US Chicago PMI and the Revised UoM Consumer Sentiment could be decisive. Positive figures could help the greenback to appreciate further versus its rivals.
USD/JPY Technical Analysis!
As you can see on the h4 chart, the USD/JPY pair dropped within a down channel pattern. Technically, it has found support on the 0.23% retracement level and now is almost to reach the downtrend line, the channel’s resistance.
Failing to approach and reach the weekly S1 (113.02) signaled that the sellers are exhausted. Making a valid upside breakout through the downtrend line could activate further growth.
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