USD/JPY Gains Traction Towards Yearly High; Technical Indicators Support Bullish Trend

The USD/JPY currency pair is experiencing renewed upward momentum, rebounding from its yearly high recorded the day before, as it approaches an intraday high of approximately 141.75 going into the European session on Wednesday.

Arslan Butt•Wednesday, June 21, 2023•1 min read

The USD/JPY currency pair is experiencing renewed upward momentum, rebounding from its yearly high recorded the day before, as it approaches an intraday high of approximately 141.75 going into the European session on Wednesday.

This movement reflects the pair’s positive response to breaking through immediate resistance, which extended from the yearly high achieved on Monday. Additionally, the pair is gaining traction from support at 141.40, which is reinforced by the 100-Hour Moving Average (HMA) and the lower boundary of a rising wedge that has been forming over the past week.

The bullish trend is further supported by technical indicators, such as the Moving Average Convergence Divergence (MACD) signaling bullishness, and the Relative Strength Index (RSI) at 14, which is sturdy without being in overbought territory.

Given these factors, the USD/JPY pair, often seen as a risk barometer, seems poised to approach its yearly high near 142.25. The 142.00 level may serve as immediate resistance.

Nonetheless, the upper limit of the previously mentioned rising wedge, currently near 142.55, could limit the pair’s ascent beyond 142.25.

If the bulls in USD/JPY manage to overcome the bearish chart pattern by breaking through the 142.55 resistance level, they could set their sights on a horizontal resistance zone around 145.00. This area is significant as it aligns with the highs from early September 2022 and the lows from October of the same year.

Conversely, if the pair falls below the 141.40 support level, it doesn’t necessarily signal a clear path for bearish movements. Additional support levels provided by the 200-Hour Moving Average and an ascending trend line that has been in place for two weeks, located near 140.50 and 139.80 respectively, may serve as barriers to further decline.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.