USD/JPY has been corrective and volatile recently, residing below the resistance area of 110.20-60. Today, JPY found support from economic reports including Core Machinery Orders report which was published with an increased value of 8.0% against the negative value of -1.9% which was expected to be at 4.2%, M2 Money Stock report was published with an unchanged value at 4.0% which was expected to increase to 4.1%, Tertiary Industry Activity report was published as expected at 0.1% from the previous negative value of -0.2%, and Prelim Machine Tool Orders report was published with a significant increase to 36.3% from the previous value of 28.0%. Despite the positive economic reports published on JPY side and no economic reports from the US today, JPY could not gain over USD but lost some grounds as well. To sum up, USD is expected to show a further gain over JPY in the coming days as of the current market sentiment. Any positive economic reports on USD side to be posted later this week will inject more bullish impulsive pressure in the future.
Now let us look at the technical chart. The price has opened higher with a gap today and after filling up the gap the price has moved quite higher today as well. Due to the current volatile structure of this pair, the price is likely to move higher for a short-term period towards the dynamic level of 20 EMA and further towards the resistance area of 110.20-60. A daily close above the support level of 1.0850 will confirm the bullish move in the coming days of the week. As the price remains below the resistance area of 110.20-60, the bearish sentiment is expected to continue further with a target towards 105.00 or lower.
