USD/JPY has been impulsively bullish recently which is pushing the price towards 114.50 resistance area. The price started today with a gap which was due to positive speech from Yellen about the US economy and a rate hike in December. Today there was no economic reports or events on JPY but tomorrow we have the Flash Manufacturing PMI report which is expected to increase to 53.1 from the previous figure of 52.9. On Thursday we have the SPPI report which is expected to show a slight increase to 0.9% from the previous value of 0.8% and on Friday the National Core CPI is expected to be unchanged at 0.7%. Besides, the Tokyo Core CPI is expected to be unchanged as well at 0.5%. On the USD side, today there is no economic reports but the Unemployment Claims report is going to be published on Thursday. This report is expected to bring in some volatility in the market as it is expected to increase to 236k from the previous figure of 222k. As of the current situation, the economic reports from Japan are not going to make any significant impact on the currency, whereas the US dollar is expected to gain momentum further if the economic reports come out to be positive which will strengthen the gains and push the price much higher in the coming days.
Now let us look at the technical view. The price is currently residing above the gap area which is expected to be covered very soon in the coming days. As the dynamic level of 20 EMA is way down which was acting as a dynamic support level to push the price higher, so currently the price is expected to retrace towards the recent support area of 113.20-50 in the coming days before it pushes up higher towards 114.30-50 area and later towards 118.50 resistance area. As the price remains above 112.50 support area, the bullish bias is expected to continue further.
