• The bias remains bullish as the DXY rallies.
• A new lower low activates a sell-off.
• The FOMC is seen as the most important event of the week.

The USD/JPY price remains bullish despite minor retreats. The pair is trading at 147.98 at the time of writing and is struggling to extend its growth amid the dollar’s lack of conviction. The Greenback’s further growth should help the pair gain meaningful traction.

The Japanese Tokyo Core CPI came in worse than expected on Friday, while SPPI matched expectations. On the other hand, the US Pending Home Sales and Personal Spending beat expectations, while Personal Income and Core PCE Price Index came in line with expectations.

Today, the price could be driven by technical factors as we don’t have important economic events. Tomorrow, the Japanese Unemployment Rate could remain steady at 2.5%.

The US is to release high-impact data, such as the CB Consumer Confidence which is expected to jump from 110.7 to 113.9 points, and the JOLTS Job Openings. The FOMC represents the most important event of the week. The FED is expected to retain the policy rates on Wednesday, but the FOMC Press Conference may trigger the volatility.

From the technical point of view, the USD/JPY price turned to the upside in the short term, erasing some of the previous losses. Still, the rebound could be only temporary as the price could only retest the immediate supply zones or the resistance levels before going down.

The pair remains trapped between the inside sliding lines (sl, sl1). Its failure to retest the median line (ml) announced exhausted buyers. The rebound may represent a flag pattern, signalling a new leg down.

Coming back below the weekly pivot point of 147.82 and making a new lower low activates a new sell-off towards the sliding line (sl).

https://www.forexcrunch.com/blog/2024/01/29/usd-jpy-price-wobbling-at-148-0-on-a-thin-trading-day/