FX.co ★ USD/JPY: exhausted buyers

The USD/JPY pair retreated after reaching yesterday's high of 149.70. Now, is located at 149.34 at the time of writing. The bias remains bullish despite temporary retreats. It could only test and retest the near term support levels before jumping higher.

The price dropped a little only because the Dollar Index retreated while the Japanese Yen Futures rebounded. Still, the Dollar Index maintains a bullish bias as the US reported positive data yesterday.

Today, the US figures should be decisive. Final GDP may report a 2.2% growth, Unemployment Claims could jump to 214K in the last week, Final GDP Price Index could register a 2.0% growth again, while Pending Home Sales is expected to fall by 1.1%.

USD/JPY Flag Pattern!

As you can see on the H1 chart, the rate dropped within a minor flag pattern. It has dropped below the uptrend line but the breakdown could be invalidated.

From the technical point of view, the bias remains bullish as long as it stays above the weekly R2 (149.18).

USD/JPY Outlook!

A false breakdown below the uptrend line and jumping above the minor downtrend line may announce an upside continuation.

Dropping and closing below the R2 (149.18) activates more declines. This is seen as a selling opportunity.