USD/JPY has been impulsively bearish recently inside the corrective range of 111.70 to 114.50. The weakness of USD helped JPY to gain impulsive momentum which is expected to push the price towards the support area in the coming days. Today, Japan had no economic reports due to observance of the 4-day Bank Holiday. On Thursday, Japan's Final Manufacturing PMI report is going to be published which is expected to be unchanged at 54.2 and on Friday Monetary Base report is going to be published which is expected to decrease to 13.0% from the previous value of 13.2%. The market is still quite low in liquidity but the impulsive bearish pressure being observed currently is quite impressive. On the USD side, ahead of the NFP, Average Cash Earnings and Unemployment rate reports are due on Friday. Today, US Final Manufacturing PMI report is going to be published which is expected to be unchanged at 55.0. To sum up, JPY has been quite impulsive with its gains recently but any positive economic report from the US side this week is expected to encourage further bullish pressure in this pair and recover all losses of USD in one go.
Now let us look at the technical chart. The price is currently proceeding quite impulsively towards the support area of 110.80 to 111.70. Price has rejected off the dynamic level of 20 EMA today whereas the confluence helped to proceed impulsively. The price is expected to proceed towards the support area and reject off it with an impulsive bullish gain with a target towards 114.50. As the price remains above the support area, the bullish bias is expected to continue further.
