FX.co ★ USD/JPY: fresh bullish formation

The USD/JPY pair seems undecided in the short term. It's trading at 141.26 at the time of writing. After its amazing rally, a temporary retreat was natural. It could test and retest the immediate support levels before jumping higher. Technically, the price action developed a bullish formation.

Fundamentally, the Flash Manufacturing PMI came in at 49.4 points versus 50.1 points, while BOJ Core CPI rose by 3.0% as expected. On the other hand, the US reported mixed figures. Today, the CB Consumer Confidence represents a major event and is expected at 112.1. Better than expected data should boost the USD.

USD/JPY Accumulates Bullish Pattern!

As you can see on the H1 chart, the USD/JPY pair tries to stabilize above the 50% (141.16) retracement level. It has developed a flag pattern which represents a bullish formation.

The US data should be decisive. It has registered a false breakout with great separation through the downtrend line, so the USD/JPY pair could test and retest the 50% retracement level and the downside line again.

USD/JPY Outlook!

A bullish closure above 141.72 is seen as a bullish signal. This activates further growth ahead.