USD/JPY Price Analysis: The bears are running into major support ahead of key US data

• USD/JPY bulls need to commit at the daily support structure near a 61.8% ratio of the recent bullish impulse.
• Should the US Dollar break higher into the 102s DXY, then the 132.00 area and beyond will be eyed. 

As per the prior analysis, on the back of the Consumer Price Index beat, the Yen indeed travelled in the forecasted trajectory despite there being red news on the US calendar later today:

USD/JPY prior analysis

USD/JPY update

The pair made the correction and subsequent continuation to the downside and is now embarking on a retest of the lows. However, the bears need to get below current support at 129.70. Also, 129.50 is a likely area of firmer support for the day ahead. It all depends now on the US Dollar.

DXY H1 chart

The US Dollar has firmed at the 78.6% and there are prospects of a move higher to crack the trendline resistance and base in the territory above 102.00 having cleared some barriers on Thursday following the US GDP data. In such a scenario, USD/JPY bears will be feeling the heat as we head over to the Federal Reserve interest rate decision on February 1. 

USD/JPY technical analysis, daily chart

Ther price has been trailing in a bearish cycle as per the daily chart above. 

zooming in, we can see that there has been a recent correction to the M-formaiton’s neckline and a 61.85 ratio reverison. The price has since stalled into a coil, on the backside of the trendline, likely meaning a breakout is imminent with there being an upside bias.  

The bulls need to commit at the daily support structure near a 61.8% ratio of the recent bullish impulse and should the greenback breakout as illustrated above, then the 132.00 area and beyond will be eyed.