USDJPY has broken out of the ascending wedge despite the weaker-than-expected the Chicago Fed National Activity Index (CFNAI) reading. The price action is now closing in on the resistance of $108.94.
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The CFNAI, which represents the monthly index designed to gauge overall economic activity and related inflationary pressure, is reported at -0.45 for September, compared to 0.15 measured in August and -0.37 expected by market analysts.
Despite the weaker-than-expected figures, USDJPY has just broken the ascending wedge resistance and is pushing towards the $108.94 resistance. The 200 DMA sits at $109.06, which is a clear target for the bulls now.
On the downside, the wedge resistance may offer support in case the price rotates back lower. All in all, USDJPY is looking bullish, short-term at least.Download our latest quarterly market outlook for our longer-term trade ideas.
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