FX.co ★ USD/JPY: downside reversal invalidated

The USD/JPY pair is bullish despite temporary retreats. It's trading at 138.57 at the time of writing and it seems determined to hit new highs. Still, an upside continuation needs confirmation.

Today, the Core Machinery Orders reported a 3.9% drop versus the 0.5% growth estimated. Tomorrow, Japan is to release BOJ Core CPI and Flash Manufacturing PMI. Still, only the US manufacturing and services data could be decisive.

USD/JPY Strong Upside Pressure!

Technically, the currency pair dropped below the uptrend line but failed to make a new lower low signaling strong upside pressure. Coming back above the uptrend line announced an upside continuation.

Now, it's trapped between 137.98 and 138.74. Stabilizing above the uptrend line may announce imminent breakouts and further growth.

USD/JPY Outlook!

Staying above the uptrend line and making a valid breakout through 138.74 activates further growth and represents a buying opportunity.