USD/JPY is currently being squeezed up a little, having a lot of volatility and indecisive movement in the pair. Both USD and JPY are currently having the best time in the market having good economic reports to back up the gains. Today Japan's Average Cash Earning report was published with an increase to 0.9% from the previous value of 0.2% which was expected to be at 0.6%. The economic reports provided help to JPY to gain over USD in the current market situation. At the same time, the US Consumer Confidence report showed a decrease to 44.7 from the previous figure of 44.9 which was expected to be at 45.1. It had some impact on the impulsive gain of the currency. On the other hand, today the US NFIB Small Business Index report was published with a decrease to 104.9 from the previous figure of 107.5 which was expected to rise to 108.4. The JOLTS Job Opening report is yet to be published which is expected to increase to 6.05M from the previous figure of 6.00M. As of the current scenario, JPY seemed to lose some ground against USD having some high impact economic reports on the USD side to be published this week. If the US economic reports turn to be positive, than USD is expected to gain impulsive momentum over JPY, leading to further moves up in this pair in the future.
Now let us look at the technical view. The price is currently quite bearish in nature but residing at the dynamic level of 20 EMA where a break above the trendline resistance with a daily close will lead to further bullish move in this pair with target towards 114.50 in the coming days. As the price remains above 112.00 support area, the bullish bias is expected to continue further.
