The USD/JPY pair dropped in the short term and now is trading at 139.86 at the time of writing. It is trading far below 140.93 today's high. Still, the bias remains bullish despite temporary retreats. Actually, a short-term correction was natural after the upwards movement.
Fundamentally, the Japanese Unemployment Rate dropped to 2.6% from 2.8% below the 2.7% expected. Still, in the short term, the greenback could try to take the lead after the CB Consumer Confidence came in at 102.3 points above the 99.1 points estimated. Tomorrow, the German Prelim CPI and the US JOLTS Job Openings could move the rate.
USD/JPY Range!As you can see on the H1 chart, the rate failed to make a new higher high and now it has turned to the downside. The uptrend line was taken out, so the price action signaled a potential downside reversal.
Still, it's premature to talk about this scenario as long as USD/JPY stays above the weekly pivot point of 139.60 and above 139.49.
USD/JPY Forecast!False breakdowns below the weekly pivot point of 139.60 and below 139.49 may announce a new bullish momentum. The uptrend line and 140.91 represent upside targets.
On the other hand, a bearish closure below 139.49 activates a larger downside movement. This is seen as a new selling opportunity.