USD/JPY has been in a bullish non-volatile trend since the bounce off from 114.00-50 resistance area. Today, JPY had positive economic report of PPI which came in at 2.1% instead of the expected 1.8% gain. Prelim Machine Tool Orders also showed an increased figure at 34.7% which previously was at 22.8%. On the other hand, USD Empire Estate Manufacturing Report is due later today which is expected to be at 7.2 which previously was at 5.2 and NAHB Housing Market Index is expected to be unchanged at 68. Overall, JPY has an upper hand over USD today comparing the economic events, forecasts and results. JPY is expected to gain more ground in the coming trading days.
Now let us look at the technical chart. The price is currently showing some bullish pressure after two days of bearish price action taking the price below 114.50 resistance area. Currently, the pair is trading with a bearish bias with a target towards 111.60 as the price remains below 114.50. On the other hand, if the price breaks above 114.50 with a daily close above it, then we will consider buy positions with a target towards 116.
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