Market Analysis: USD/JPY Extends Sharp UpsideMarket Analysis: USD/JPY Extends Sharp Upside
USD/JPY managed to reclaim 156.00 and might aim for more gains.
Important Takeaways for USD/JPY Analysis Today
- USD/JPY climbed higher above 155.50 and 156.00.
- There is a bullish trend line forming with support near 156.30 on the hourly chart.
USD/JPY Technical Analysis
On the hourly chart of USD/JPY, the pair started a decent increase from 154.35. The US Dollar gained bullish momentum above 155.00 against the Japanese Yen.
It settled above the 50-hour simple moving average and 156.00. The upward move was such that the pair even tested 156.90. A high was formed at 156.93 and the pair is now consolidating gains. There was a minor pullback below 156.75.
The current price action is positive, and the pair seems to be aiming for more gains. There is also a bullish trend line forming with support near 156.30 and the 23.6% Fib retracement level of the upward move from the 154.34 swing low to the 156.93 high.
Immediate resistance on the USD/JPY chart is near 156.90. The first key hurdle sits at 157.00. If there is a close above 157.00 and the RSI moves above 60, the pair could rise toward 157.50. The next stop for the bulls might be 157.80, above which the pair could test 158.40 in the coming days.
On the downside, the first major support is near the trend line at 156.30. The next area of interest could be near 155.65, below which the pair could test the 61.8% Fib retracement at 155.35. Any more losses could open the doors for a move toward 154.35.
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