FX.co ★ USD/JPY: upside scenario takes shape

The USD/JPY pair extended its growth as expected. Despite temporary drops, the bias is bullish. It was traded at 148.70 at the time of writing and it seems strong enough to resume its growth.

The price jumped higher as the yen Futures crashed while the Dollar Index bounced back. Fundamentally, the Japanese Retail Sales came in better than expected, while Prelim Industrial Production, Consumer Confidence, and Housing Starts came in worse than expected. Tomorrow, the Final Manufacturing could remain steady at 50.7 points.

As you already know, the FED is expected to increase the Federal Funds Rate by 75bps on Wednesday. The BOJ maintained the monetary policy unchanged, so the USD could resume its appreciation versus the Yen. The US is to release high-impact data during the week. Better-than-expected figures could help the greenback to grow.

USD/JPY Minor Range!

You knew from my previous analysis that breaking above 147.86 activates further growth. The rate retested this level before climbing towards 148.84 today's high. Now, it's trapped between 148.42 and 148.84 levels.

As you already know, the ascending pitchfork's lower median line (lml) represents dynamic support. 148.42 represents a downside obstacle as well.

USD/JPY Forecast!

A valid breakout through 148.84, a new higher high activates further growth. Testing and retesting the support levels could announce a bullish momentum. A new higher high could represent a long opportunity with a potential target at the R1 (149.73).