USD/JPY Price Challenges 146.5 as Risk Remains Sour

• A new higher high validates further growth.
• The US data should have a big impact during the week.
• The bias remains bullish as long as it stays above the 50% Fibonacci line.

The USD/JPY price rallied in the short term, trading at 146.45 above the former high of 146.41. The bias is bullish as the US dollar soared amid poor risk appetite.

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The Yen depreciated a little even though the Japanese PPI rose by 0.0% compared to the 0.3% drop estimated. Later, the US and the Canadian data should have a big impact on all markets.

The Empire State Manufacturing Index is expected at -4.9 points versus -14.5 points in the previous reporting period.

Furthermore, the Canadian CPI m/m may announce a 0.3% drop after a 0.1% growth in the previous reporting period. Positive US data helps the greenback to dominate the currency market.

Tomorrow, the US will release the Retail Sales indicator which is expected to report a 0.4% growth, and the Core Retail Sales data. The US figures should move the rate, so the fundamentals could be decisive during the week.

USD/JPY Price Technical Analysis: Strongly Bullish

Technically, the USD/JPY price edged higher after escaping from the flag pattern. You knew from my previous analysis that the bias is bullish as long as it stays above the downside 50% Fibonacci line of the ascending pitchfork.

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Now, the pair has passed again above the median line (ml) and it challenges the former high of 146.41. This stands as a static resistance, so it remains to see if the price validates its breakout, confirming a potential upside continuation.

The 146.58 historical level represents a static upside obstacle as well. So, taking out this resistance, making a new higher high validates more gains ahead.

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• Source: https://www.forexcrunch.com/blog/2024/01/16/usd-jpy-price-challenges-146-5-as-risk-remains-sour/