USD/JPY is currently showing some bullish pressure after rejecting the support level of 110.60 yesterday. Today the Bank of Japan revealed the Monetary Policy Meeting Minutes today which showed that the bank is holding the monetary policy upgradation and not disclosed any hint on quantitative easing. That is why the Japanese currency has got weaker in the process. Yesterday Japan's Flash Manufacturing report showed a slight decrease to 52.2 from the previous reading of 52.4 which was expected to be at 52.3. On the other hand, the United States posted some downbeat economic report recently so the yen managed to gain ground against the greenback. Today, the CB Consumer Confidence report is going to be published which is expected to decrease to 116.5 from previous value of 118.9. Besides, the HPI report is expected to show decrease to 0.5% from the previous value of 0.7%. S&P/CS Composite-20 HPI report is expected to show a slight increase to 5.8% from the previous value of 5.7% and Richmond Manufacturing Index is expected to be unchanged at 7. As the Fed interest rates decision is going to be published tomorrow along with the monetary policy statement, USD is expected to show some more gains over JPY in the coming days. FED is expected to be quite hawkish on the interest rate decisions and inflation outlook tomorrow.
Now let us look at the technical view. The price has shown a good amount of bearish rejection and bullish pressure yesterday which is continued even today. The price is expected to reach the recent resistance at 112.30 before proceeding further down towards 110.20 support level in the coming days. The pair is currently in a corrective volatile structure where it is expected to be bullish in the nearest future despite the long-term trend is bearish.
