The USD Dollar (USD) inched higher against the Japanese Yen (JPY) on Friday, increasing the price of USDJPY to more than 113.00 amid some key economic events. The technical bias shall remain bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being trade around 113.13. A hurdle can be noted near 113.64, the trendline resistance area ahead of 115.37, the swing high of the recent upside rally and then 118.61, the swing high of the last major upside wave as demonstrated in the give below daily chart.

On the downside, a support can be noted around 112.52, a short term horizontal support ahead of 110.00, the psychological number and then 109.35, the confluence of 50% fib level as well as horizontal support area. The technical bias shall remain bearish as long as long as the 112.58 support area is intact.

BoJ Meeting Minutes

Members of the Bank of Japan’s monetary policy board believe that the country’s economic recovery remains on a moderate recovery path, minutes from the board’s December 19 and 20 meeting revealed on Friday. Inflation expectations continue to be in a weakening phase, hampering the central bank’s stated goal of ending deflation. “The year-on-year rate of change in the CPI is likely to be slightly negative or about 0 percent for the time being, due to the effects of the decline in energy prices, and as the output gap improves and medium-to long-term inflation expectations rise, it is expected to increase toward 2 percent,” the minutes said.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.