The USDJPY currency pair has demonstrated resilience, remaining within a well-defined rising price channel on the 4-hour chart, thus sustaining the broader uptrend that originated from 133.49.
Currently, the pair is experiencing a pullback from its recent peak at 140.91. This retracement should be viewed as a period of consolidation within the overall uptrend. As long as the support of the rising price channel remains intact, there is a high probability of further upward movement. The next potential target lies around the 142.50 area, offering an opportunity for additional gains.
On the downside, traders should be mindful of a breakdown below the lower border of the price channel. Such a breach would suggest that the uptrend has potentially completed at the recent high of 140.91. In that scenario, a subsequent decline towards the support level at 135.00 becomes a possibility.
Monitoring the price action at the boundaries of the rising price channel is crucial to assess the sustainability of the uptrend. A decisive breakout above the upper border of the channel would provide further confirmation of the bullish momentum, potentially paving the way for an extended move higher. Conversely, a breakdown below the lower border of the channel would indicate a shift in the market dynamics, suggesting a reassessment of the overall bullish bias.
In conclusion, the USDJPY currency pair remains within a rising price channel, indicating the continuation of the uptrend from 133.49. As long as the support of the channel holds, the pullback from 140.91 can be seen as a period of consolidation, potentially leading to further upside movement with a target around 142.50. A breakdown below the lower border of the channel would suggest a potential completion of the uptrend, potentially leading to a decline towards 135.00. Monitoring the price action at the channel boundaries and staying informed about market developments are essential for navigating the USDJPY pair effectively.
