The USD/JPY pair increased as much as 115.62 today where it has found strong resistance. It remains to see what will really happen in the short term as the rate has reached a resistance zone. Also, after its strong rally, we cannot exclude a potential retreat. Still, the bias is bullish, so resuming its growth is still in cards.
Fundamentally, the Japanese data came in worse than expected today weakening the JPY. The Average Hourly Earnings dropped by 0.2% versus 0.9% growth expected, Household Spending registered a 0.2% drop even if the traders expected a 0.0% growth, while the Economy Watchers was reported at 37.9 points below 48.1 forecasts. In addition, the Current Account came in at 0.79T below 1.16T forecasted, while Bank Lending rose by only 0.6% compared to 0.8% expected.
USD/JPY Bulls In Control!USD/JPY reached the first warning line (WL1) which represents a dynamic resistance. 115.68 former high stands as an upside obstacle as well. In my opinion, a valid breakout above these levels may indicate further growth.
False breakouts or a strong bearish pattern could announce that the upside movement ended and that the sellers could take the lead again.
USD/JPY Prediction!A new higher high, a valid breakout above 115.68 could activate an upside continuation at least towards 116.35.