USDJPY has exhibited a sharp bounce, recovering from 145.89 to reach 148.81, challenging the previous resistance level at 148.80. Let’s analyze the technicals to understand the potential implications for the currency pair’s future direction.
Key Resistance Level at 148.80
- The recent surge has brought USDJPY to the critical resistance level of 148.80, which previously halted the upside momentum.
- Breakout: Surpassing this level would signal a potential resumption of the uptrend initiated from 140.25.
- Target: If the breakout occurs, the next potential target for USDJPY could be around the 150.00 area.
Immediate Support at 147.45
- If USDJPY fails to break above 148.80 and encounters rejection, the immediate support level to watch sits at 147.45.
- Breakdown: A decline below this support could trigger another downward move, potentially pushing the pair back towards the initial bounce point of 145.89.
Overall Sentiment
USDJPY’s current position near the crucial resistance level creates uncertainty about its next move. A successful breakout above 148.80 would suggest a continuation of the bullish trend, while a drop below 147.45 might indicate a renewed downtrend.