USD/JPY has been quite volatile and corrective between the price range of 112.00 to 110.50 for a few days. USD has been quite impulsive with the recent economic reports, but failed to gain such momentum against JPY in the process as JPY has been quite stronger with the economic reports as well.
After the USD NFP report, USD attracted good amount of sentiment throughout other majors. Ahead of PPI and CPI reports to be published this week, today, USD JOLTS Job Opening report is going to be published which is expected to increase to 6.74M from the previous figure of 6.64M and IBD/TIPP Economic Optimism is also expected to increase to 57.2 from the previous figure of 56.4.
On the other hand, ahead of the Prelim GDP and BOJ Summary of Opinions report this week, today, JPY Household Spending report has been published as expected at -1.2% increasing from the previous value of -3.9% and Average Cash Earnings has increased to 3.6% from the previous value of 2.1% which was expected to decrease to 1.7%. Moreover, today, JPY Leading Indicators report is going to be published which is expected to decrease to 105.4% from the previous value of 106.9%.
As of the current scenario, both currencies in the pair is quite strong with the economic reports while higher impactful economic reports are yet to be published this week. As the time unfolds, the corrective phase is expected to continue a bit further, but overall, USD is a bit stronger than JPY in comparison to the recent results and upcoming economic forecasts.
Now let us look at the technical view. The price is currently residing at the edge of the dynamic level of 20 EMA between the price area of 110.50 to 112.00. Recent bearish pressure off the 112.00 area has been quite impulsive and is expected to push the price towards 110.50 in the coming days before the price continues with the bullish trend in the process. As the price remains above the 110.50 area, the bullish bias is expected to continue further.
SUPPORT: 110.50
RESISTANCE: 112.00
BIAS: BULLISH
MOMENTUM: VOLATILE AND CORRECTIVE
