FX.co ★ USD/JPY: upside scenario intact

The USD/JPY pair turned to the downside and now is trading at 143.39 at the time of writing and it seems very heavy. Still, the bias remains bullish despite temporary drops. A corrective phase needs strong confirmation. The JPY lost significant ground versus its rivals as the Japanese Yen Futures plunged.

Fundamentally, the BOJ Core CPI reported a 3.1% growth matching expectations. On the other hand, the US Durable Goods Orders rose by 1.7% even if the specialists expected a 0.8% drop, while Core Durable Goods Orders reported a 0.6% growth compared to 0.0% growth estimated. Furthermore, the HPI and S&P/CS Composite-20 HPI came in better than expected as well. Despite positive data, the greenback depreciated a little. The Canadian inflation figures had an impact as well.

Still, the US CB Consumer Confidence indicator should have a big impact and could bring high action. The New Home Sales and Richmond Manufacturing Index will be released as well.

USD/JPY Range Pattern!

As you can see on the H1 chart, the USD/JPY pair moves sideways between 143.86 and 142.92 pivot point. The bias remains bullish as long as it stays above the uptrend line.

Technically, the current range could announce an upside continuation. This could represent a bullish formation.

USD/JPY Prediction!

A new higher high, a bullish closure above 143.86 activates further growth and brings new buying opportunities.