USD/JPY has declined in the short term but it seems that the retreat is over and the price could resume its rebound. The price should jump higher if the Dollar Index and JP225 will continue to increase.
The greenback recovered after the US inflation data has come in line with expectations. The CPI increased by 0.4%, while the Core CPI rose by 0.1% as expected. The US still needs support to be able to give birth to a strong appreciation versus its rivals.
The Retail Sales, Capacity Utilization Rate, and Industrial Production could be decisive tomorrow. Today, the Unemployment Claims could shake the pair if the indicator reports surprising data.
USD/JPY Bullish Reversal Expected!
USD/JPY has found support at the Pivot Point (103.53) and now is pressuring the uptrend again. The selling pressure is still high as long it stays within the Falling Wedge's body, under the downtrend.
An upside breakout is imminent as long as USD/JPY is traded near the downtrend line. A valid breakout and a new higher high could bring a great long opportunity. Personally, I believe that the price will move sideways in the short term before taking out the downtrend line.
Buy USD/JPY after jumping and closing above 104.39 former high. 106.00 psychological level could be used as an upside target.