empty
 
 
31.03.2023 08:19 AM
USD/JPY in buyers's territory

The USD/JPY pair rallied in the short term registering a new high of 133.50. Now, it has retreated a little to retest the near-term support levels before jumping higher again. The bias is bullish in the short term as the JPY was weakened by the Yen Futures' drop.

Today, the Japanese economic data came in mixed. The Housing Starts dropped by 0.3% versus 0.5% drop expected, Retail Sales rose by 6.6% beating the 5.9% growth forecasted, Prelim Industrial Production surged by 4.5% exceeding the 2.8% growth estimated, while Tokyo Core CPI reported a 3.2% growth versus the 3.1% growth expected. Unfortunately for the JPY, the Unemployment Rate increased unexpectedly from 2.4% to 2.6%.

Later today, the US data could bring high action. The Core PCE Price Index is seen as a high-impact event. The indicator is expected to report a 0.4% growth, Revised UoM Consumer Sentiment could drop from 63.4 to 63.1, while Chicago PMI could be reported at 43.1 points, below 43.6 points in the previous reporting period.

USD/JPY Accumulates More Bullish Energy!

This image is no longer relevant

Technically, the currency pair jumped above the 133.00 psychological level but failed to stay above it. Now, it has retested the median line (ml) which represents a dynamic support.

The R1 of 132.59 and the 132.18 represent downside obstacles as well. As long as it stays above these downside obstacles, USD/JPY could extend its growth.

USD/JPY Outlook!

Staying above the median line (ml), testing and retesting this dynamic support and consolidation above 133.00 psychological level signals further growth and is seen as a new buying opportunity. Also, a new higher high and a bullish closure above today's high of 133.50 activates a strong rally.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback