FX.co ★ USD/JPY challenges dynamic resistance, 130.61 as critical resistance

The USD/JPY pair challenges a dynamic resistance as the DXY rebounded while the Yen Futures dropped. It's trading at 130.09 at the time of writing. in the short term, it could continue to move sideways.

Tomorrow, the Japanese and US data could be decisive. Japanese Retail Sales may report a 3.2% growth, Prelim Industrial Production could drop by 1.1%, while the Unemployment Rate is expected to remain at 2.5%. The Consumer Confidence and the Housing Starts data will be released as well.

On the other hand, the US Chicago PMI may increase to 45.4 points from 44.9, while CB Consumer Confidence is expected at 109.2, above 108.3 in the previous reporting period. Still, the FOMC and the NFP represent the most important events of the week, so the fundamentals could change the sentiment.

USD/JPY Bulls Are Still In The Game!

Technically, USD/JPY found support on the outside sliding line (sl) again and now it challenges the triangle's resistance. You knew from my analyses that as long as it stays within the ascending pitchfork's body, the rate could develop a new leg higher.

The downtrend line and 130.61 represent upside obstacles and targets, that's why is premature to talk about a new leg higher.

USD/JPY Outlook!

A valid upside breakout from the current triangle followed by a new higher high and a bullish closure above 130.61 confirm a larger growth and could really bring a good long opportunity.