The currency pair has resumed the upside movement and seems poised to jump much higher after the good United States data. The pair has retreated a little because the traders were a little surprised by some US data.
USD/JPY is trading in the green and should resume the upside movement because is expected to reach some important resistance levels. We’ll see what will happen because the dollar index is still located under some very important resistance levels. The USDX is now pressuring the 92.49 static resistance, a valid breakout above could confirm a further growth in the upcoming period.
The dollar received a helping hand from the United States data, the Unemployment Claims dropped unexpectedly in the previous week, from 298K to 284K, even if the traders have expected to see an increase to 303K. Moreover, the CPI rose by 0.4%, beating the 0.3% and the 0.1% growth in the former reading period, while the Core CPI surged by 0.2%, matching the 0.2% estimate.
USD/JPY continues to move in range on the short term, remains to see how will react when will hit the warning line (WL3). We’ll see if will have enough energy to reach the confluence area formed at the intersection between the 38.2% retracement level with the WL3. Only a valid breakout above the WL3 will confirm a further increase, while a rejection will send the rate tumbling.
