USDJPY’s price action suggests continued strength. This analysis examines the technical situation and explores potential scenarios for the currency pair.
USDJPY Maintains Uptrend:
- Rising Trend Line Support: A key technical indicator for USDJPY is the rising trend line on the 4-hour chart. As long as the price remains above this trend line, the uptrend that began at 150.80 is likely to continue.
- Upside Move Gains Traction: USDJPY has already reached a high of 156.86, highlighting the ongoing bullish momentum.
Upside Targets in Focus:
- Further Appreciation Likely: If the uptrend persists, the next potential target zone to watch could be around the 159.00 area.
Support Levels to Consider:
- 156.20 Initial Support: The initial support level to monitor is at 156.20. A minor pullback could see the price retest this level.
- Trend Line Support Crucial: A more significant development would be a decline below the rising trend line. This break could signal a completion of the current uptrend.
Overall Sentiment:
The technical outlook for USDJPY remains bullish in the short term. The price action above the trend line and the recent highs reached support the continuation of the uptrend. However, a break below the trend line would suggest a potential reversal, so close monitoring of this level is essential.