- USD / JPY falls 100 pips in the American session.
- USD / JPY Technical Outlook: Bullish despite Wednesday’s pullback towards a four-month uptrend line.
On Wednesday, after the Bureau of Labor Statistics (BLS) revealed that US inflation reached a level not seen since 1982, the USD/JPY plummets, trading at 114.60 at the time of writing.
USD / JPY Price Forecast: Technical Outlook
With US consumer inflation data in the rearview mirror, USD / JPY fell close to a four-month uptrend line, pulled from the September 2021 cycle lows, which exceeds the moving average of 50 days (DMA), which is at 114.24.
Fundamentally and technically driven, USD / JPY is biased to the upside. The daily moving averages (DMAs) are well below the price, in a bullish order, which means that the shorter time frame is above the longer ones.
That being said, USD / JPY pullbacks could be seen as opportunities for USD bulls if that’s the case. The next support is at the aforementioned trend line, around the 114.35-45 area at press time. A break of the latter would expose the DMA of 50 at 114.24, followed by 114.00
To the upside, the pair’s first resistance would be 115.00. A break above the psychological double zero level would expose the daily high on November 24, 2021 at 115.52, followed by a challenge from the annual high at 116.35.
Additional technical levels
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