USD/JPY has displayed a resilient character in the face of recent economic events. Despite a mix of economic data from the U.S. with positive new home sales and GDP, but negative initial jobless claims and core durable goods orders, the pair remains within a consolidation phase.
Technical analysis: USD/JPY has been trading below a key resistance level near 148.70, with the Dollar Index's (DX) recovery suggesting a potential for upside movement. It has broken the major resistance at 146.50 and has just retested it and bounced off of it, confirming that the resistance has become support. The support has remained firm, providing a foundation for its current stability. A significant move for the USD is likely contingent on a break above the current resistance, which could lead to a new bullish phase.
Our position: With the U.S. market showing mixed signals, we maintain a cautious yet optimistic stance on USD/JPY, looking for buying signals that confirm a breakout above resistance. Considering the recent economic data and the face that next week we have the Federal Reserve's rate decision, we are monitoring the pair for potential upward momentum.
Technical analysis: USD/JPY has been trading below a key resistance level near 148.70, with the Dollar Index's (DX) recovery suggesting a potential for upside movement. It has broken the major resistance at 146.50 and has just retested it and bounced off of it, confirming that the resistance has become support. The support has remained firm, providing a foundation for its current stability. A significant move for the USD is likely contingent on a break above the current resistance, which could lead to a new bullish phase.
Our position: With the U.S. market showing mixed signals, we maintain a cautious yet optimistic stance on USD/JPY, looking for buying signals that confirm a breakout above resistance. Considering the recent economic data and the face that next week we have the Federal Reserve's rate decision, we are monitoring the pair for potential upward momentum.