USD/JPY targeting new highs

The currency pair moves somehow sideways in the short term. It was trading at 143.47 at the time of writing. The bias remains bullish, so further growth is natural despite temporary retreats. Actually, temporary drops or range movements should bring new long opportunities.

Fundamentally, JPY took a hit from the Japanese Flash Manufacturing PMI on Friday. The economic indicator came in at 49.8 points versus 50.2 expected, confirming contraction. Today, the Japanese SPPI rose only 1.6% compared to 1.8% growth expected. Tomorrow, the BOJ Core CPI is expected at 3.1%. Still, the US data should really shake the markets, along with the Canadian CPI. The US Consumer Confidence is expected to increase from 102.3 to 103.9. Furthermore, the Durable Goods Orders, Core Durable Goods Orders, New Home Sales, and Richmond Manufacturing Index will be released as well. Positive US data should lift the greenback.

USD/JPY extended its growth within an up-channel pattern. So, as long as it stays above the uptrend line, the bias remains bullish. The weekly pivot point of 142.92 represents a static support.

The current sideways movement is seen as a bullish formation. The pair tries to attract more buyers before jumping higher.

Testing and retesting the weekly pivot point of 142.92 and the uptrend line should announce a new leg higher, an upside continuation. The current consolidation is seen as a buying opportunity with a potential target at the weekly R1 (144.64).