USD/JPY Price Caught in Triangle Under 110.00 Before NFP

The USD/JPY price rebounded as the Dollar Index rose a little after Friday’s sell-off. Still, the price continues to move sideways in the short term, so we’ll have to wait for a fresh trading opportunity.

The Japanese Yen could take the lead again if the Nikkei and the Dollar Index drop deeper. Today, the Japanese Retail Sales reported a 2.4% growth in July versus 2.1% expected and after only 0.1% growth registered in June. The US Pending Home Sales registered a 1.8% drop in July. This could be bad for the US Dollar, USD/JPY could drop again after the current rebound.

Tomorrow, the Japanese Unemployment Rate, prelim Industrial Production, Consumer Confidence, and the Housing Starts will definitely impact the JPY. Also, the United States CB Consumer Confidence and the Chicago PMI could move the pair.

Nikkei (JP225) price technical analysis: False breakout

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JP225 4-hour price chart

JP225 is trading in the red at 27,671.3 and is almost to hit the 27,658,8 weekly pivot point. Making a valid breakdown below the pivot point could signal a deeper drop. This scenario could signal that the Japanese Yen could rise versus its rivals.

Technically, it has registered another false breakout above the ascending pitchfork’s median line (ml). Also, its failure to close above 27,901, to make a new higher high signaled that JP225 could turn to the downside in the short term.

USD/JPY price technical analysis: Imminent breakout

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USD/JPY 4-hour price chart

The USD/JPY pair jumped above the weekly pivot point (109.82), and now it stands at the 109.92 level. The price action has developed a new triangle pattern, so only a valid breakout from this formation could bring great trading opportunities.

The price could rise as long as the Dollar Index and the Japanese stock index (JP225) stay higher. 110.14 -110.22 is seen as a strong resistance zone. A valid breakout through this zone could really announce a larger upwards movement in the upcoming period.