The USD/JPY price rose after the relatively strong Japanese household spending data and ahead of the US nonfarm payroll numbers. The USDJPY is trading at 105.53, which is the highest it has been since December last year.
USD/JPY news: The Japanese statistics agency published relatively strong household spending numbers earlier today. The data showed that the country’s spending increased by 0.9% in January after dropping by 1.8% in the previous month. The spending dropped by 0.6% on an annualised basis. Looking ahead, the pair will react to the important US employment numbers that are scheduled for later today. You can read our preview of these jobs numbers here.
USD/JPY technical outlook
On the four-hour chart, we see that the pair formed a bullish flag a few weeks ago. This flag is usually a sign of a bullish continuation pattern. And last week, the price moved above the upper side of this bullish flag. The price remains above the 25-day and 15-day exponential moving averages. Also, the Relative Strength Index (RSI) has continued to rise. Therefore, the pair will remain in a bullish trend so long as it is above the two moving averages.
USDJPY technical chart