After the previous session's analysis, USD/JPY has sustained its upward trajectory, showcasing a bullish stance with a higher-than-expected U.S. CPI. The pair's rise suggests a strong bullish sentiment as it tests the major resistance level.
Technical analysis: USD/JPY's advancement is characterized by a newly formed bullish channel, underscoring the pair's ascent. The approach to the major resistance level near 148.00 is critical; a breakout above could confirm the continuation of the current trend. However, the market is now watching to see if the pair will maintain its momentum or retrace to the lower boundary of the channel, especially given the recent CPI data which could strengthen the USD further. The pair is looking to retest its recent resistance it has broken, which perfectly aligns with the trendline of the channel.
Our position: In line with the bullish trend, potential pullbacks to the channel's lower edge could present buying opportunities, especially if the pair shows signs of holding above this dynamic support. We're closely observing the 148.00 resistance level for a potential breakout, as the market adapts to recent economic data. The current strategy leans toward looking for buy positions as the pair is likely to make a retest of the major resistance is has recently broken. Also, with the anticipation that the bullish channel will hold and offer opportunities for upside gains.
Technical analysis: USD/JPY's advancement is characterized by a newly formed bullish channel, underscoring the pair's ascent. The approach to the major resistance level near 148.00 is critical; a breakout above could confirm the continuation of the current trend. However, the market is now watching to see if the pair will maintain its momentum or retrace to the lower boundary of the channel, especially given the recent CPI data which could strengthen the USD further. The pair is looking to retest its recent resistance it has broken, which perfectly aligns with the trendline of the channel.
Our position: In line with the bullish trend, potential pullbacks to the channel's lower edge could present buying opportunities, especially if the pair shows signs of holding above this dynamic support. We're closely observing the 148.00 resistance level for a potential breakout, as the market adapts to recent economic data. The current strategy leans toward looking for buy positions as the pair is likely to make a retest of the major resistance is has recently broken. Also, with the anticipation that the bullish channel will hold and offer opportunities for upside gains.