#USDJPY #Forex #Markets
After the breakdown of the resistance level of 130.80 – 131.45 last Monday, 6.02, the price of USDJPY returned to the level and traded in a narrow range, literally glued to the level of 130.80 – 131.45. Another upward impulse took place today. At the same time, no fundamental data was received from Japan.
This is probably due to concerns about inflation in the United States and the current statements of officials from the Fed about plans to further tighten the PREP. I.e., in this situation, it was the strengthening of the dollar that influenced today’s movement.
The ratio of buyers and sellers smoothly moves to the side of the latter (41.5% of buyers versus 58.5% of sellers). This is a signal to continue the upward movement.
Technically, the price tested the broken level and broke through the upper limit of the descending channel. The RSI indicator has overcome the middle line and also indicates the probability of further growth.
Further movements in the USDJPY will also strongly depend on tomorrow’s CPI data in the US. Japan’s GDP data will also be published tomorrow. The technical goal at the moment is to rise to the levels of 134.80 – 135.80 (the upper limit of the ascending channel, within which the price is currently located).
But, again, it all depends on data from the USA. If the CPI does not show signs of growth, then there will be a reverse weakening of the USD and the USDJPY growth scenario will be canceled.
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