The USD/JPY pair extended its narrow range in the short term. It was trading at 138.78 at the time of writing. It seems determined to resume its upwards movement as the Dollar Index jumped higher.
Fundamentally, the USD is bullish after the US CB Consumer Confidence and the JOLTS Job Openings came in better than expected yesterday. Today, the US ADP Non-Farm Employment Change is seen as a high-impact event and is expected at 300K. In addition, Chicago's PMI could be reported higher at 52.5 points.
The Japanese Retail Sales, Prelim Industrial Production, and Consumer Confidence came in better than expected. Only the Housing Starts came in worse than expected.
USD/JPY Attracts More Buyers!Technically, the USD/JPY pair maintains a bullish bias as long as it stays above the R1 (138.20). The R2 (138.90) and the 139.07 represent upside obstacles.
Also, the uptrend line stands as dynamic support, only a new lower low and a valid breakdown below this line could invalidate the upside scenario and could announce a bearish reversal.
USD/JPY Forecast!A new higher high, a valid breakout above the 139.07 former high could activate further growth and could bring new long opportunities.