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The USD/JPY pair is trading in the green at 129.82 at the time of writing on the H1 chart. The other day, the price was in a corrective phase as the Dollar Index dropped while the Japanese Yen Futures tried to rebound.
Technically, the corrective phase could be only a temporary one. USD/JPY could test and retest the immediate support levels before turning to the upside again. Fundamentally, the US data came in mixed. The Revised UoM Consumer Sentiment dropped from 65.7 points to 65.2 points even if the specialists expected a potential growth to 65.8, while Chicago PMI came in at 56.4 points below 62.1 estimates. Personal Income and Personal Spending increased more than expected, while the Core PCE Price Index came in line with expectations.
As you can see on the H4 chart, USD/JPY reached 129.40 key level and now it has rebounded. The former high is seen as a downside obstacle (resistance turned into support). As long as it stays above the 129.40 - 129.10 area, the price could develop a new bullish momentum.
129.00 psychological level and the descending pitchfork's median line (ml) represent downside obstacles as well. Only a valid breakdown below these levels could signal that the correction could resume and that an upside continuation could e invalidated.
Registering only false breakdowns below 129.40 - 129.10 area or developing a strong consolidation above these support levels could announce a new swing higher and could bring buying opportunities.
Being located above strong support levels, personally, I will look for buying opportunities with a potential upside target at 131.00 psychological level.
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