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30.10.2023 02:34 PMThe USD/JPY pair dropped as much as 149.47 today, registering a new lower low. Now it has rebounded and is trading at 149.77 at the time of writing. After the last sell-off, the rate tries to rebound. Still, it could only test and retest the near-term resistance levels before going down.
Fundamentally, the USD tries to rebound and recover after its depreciation as the US Revised UoM Consumer Sentiment and Personal Spending came in better than expected while Core PCE Price Index matched expectations on Friday.
Tomorrow, the BOJ is expected to keep its monetary policy. Still, Japan is to release Housing Starts, Consumer Confidence, Retail Sales, Unemployment rate, and the Prelim Industrial Production as well, so the volatility could be huge.
On the other hand, the US is to release the CB Consumer Confidence, Chicago PMI, Employment Cost Index, HPI, and the S&P/CS Composite-20 HPI figures. Positive US data and poor Japanese figures should lift the price.
As you can see on the H1 chart, the rate found strong demand around the 149.32 former low and now it has turned to the upside.
The former high of 149.81 represents a key upside obstacle. Escaping from the Rising Wedge announced a larger downside movement. Still, the rate could try to retest the broken support levels before extending its leg down.
Jumping and closing above 149.81 activates further growth towards the uptrend line.
False breakouts above the former high signals a new sell-off towards 149.32. A larger downside movement and a good selling opportunity could be brought by a bearish closure below 149.32.
