• The bias remains bullish despite minor drops.
• The bearish formation is far from being confirmed.
• A new lower low activates a corrective phase.

The USD/JPY price climbed as high as 153.38 today, marking a fresh high. Now, the pair has retreated a little and is trading at 153.23 at the time of writing. The bias remains bullish despite minor retreats.

The dollar’s strong rally after the US inflation figures have weighed down the Japanese yen. The currency pair stays higher even though the PPI reported only a 0.2% growth versus the 0.3% growth estimated, while the Core PPI rose by 0.2% as expected.

The US dollar received a helping hand only from the Unemployment Claims. The indicator came in at 211K, compared to 216K estimated.

Today, the Yen took a hit from the Japanese Revised Industrial Production, which reported a 0.6% drop, more versus the 0.1% drop forecast.

Later, the US economic data could bring life to the USD/JPY pair. The Prelim UoM Consumer Sentiment may drop from 79.4 points to 79.0 points, which could be bad for the greenback. The Prelim UoM Inflation Expectations and Import Prices data will be released as well.

The USD/JPY price continues to challenge the weekly R3 of 153.24. It stands as a static resistance. The former high of 153.31 represents an upside obstacle as well. As you can see on the hourly chart, the price action has developed a potential Rising Wedge pattern. Still, this formation is far from being confirmed.

The bias is bullish as long as it stays above the minor uptrend line and the 152.75 former low. So, further growth is favorable. Only a new lower low, dropping and closing below 152.75, could activate a larger correction.

https://www.forexcrunch.com/blog/2024/04/12/usd-jpy-price-spikes-up-showing-exhaustion-signs/