USD/JPY increased a little today and tries to recover after the yesterday’s drop. Continues to move sideways on the short term, so is better to stay away until we’ll have a clear direction and a fresh trading signal. I believe that we’ll have a clear direction in the upcoming days as the United States data will have a big influence.
Price increased as the USD was driven higher by the USDX’s rebound, the index failed to reach the near term support from 92.55 and from 92.49 level. A USDX’s accumulation will signal a broader rebound, but we have to be patient to see what the US data will bring in the afternoon.
The USD will dominate the currency market again if the United States will impress later, but I want to remind you that another disappointment will ruin any upside perspective.
Price continues to be trapped between the 23.6% and the 50% Fibonacci levels, has broken above the warning line (wl1), but this could be a false breakout. Is pressuring the warning line (wl1), but technically seems too overbought to resume the upside movement and could drop towards the 50% retracement level again.
The United States data will shake the markets, not only the USD/JPY pair, you should be careful because this will be a crucial day for the greenback. Some good numbers will force the FED to think at another rate hike till the end of the year.
