USDJPY has continued its impressive rally, reaching new highs. This analysis examines the technical situation and explores potential scenarios for the currency pair.
USDJPY Extends Uptrend:
- Fresh High Established: USDJPY has extended its upside move from 150.80, reaching a new high of 154.44. This move reinforces the ongoing uptrend.
Bullish Momentum Likely to Continue:
- Rising Trend Line as Support: As long as the price remains above the rising trend line on the 4-hour chart, the uptrend is likely to continue. This trend line has been acting as a significant support level throughout the recent ascent.
- Upside Target in Focus: With the uptrend seemingly intact, the next potential target zone to watch could be around the 156.00 area.
Support Levels to Consider:
- 153.65 Initial Support: While the immediate outlook remains bullish, there are potential support areas to acknowledge. A pullback might encounter initial support around 153.65.
Uptrend Correction or Continuation?
- Breakdown Below Trend Line: A breakdown below the rising trend line on the 4-hour chart would be a significant development. This move could indicate that a consolidation phase within the longer-term uptrend that began at 146.47 is underway.
- 152.00 Potential Support: In a consolidation scenario, the pair could find support around 152.00.
Overall Sentiment:
The technical outlook for USDJPY remains strongly bullish in the short term. The uptrend is showing strong momentum, with the rising trend line acting as key support. However, a breakdown below the trend line could signal a potential pause in the uptrend for consolidation. Close monitoring of price action around these key levels will be crucial in determining the future direction of USDJPY.