Technical Analysis – USDJPY advances to fresh 34-year high
April 25, 2024 8:28 am
USDJPY trades at its highest level since April 1990
Momentum indicators flag extremely overbought conditions
For now, Japanese authorities seem reluctant to intervene
USDJPY has been in a steady uptrend after finding its feet near the 200-day simple moving average (SMA) in early March. On Thursday, the pair posted a fresh 34-year peak, extending its rally within a territory that the Japanese authorities were expected to defend.
Should bullish pressures persist, the price could storm to fresh multi-year highs before it challenges 154.64, which is the 123.6% Fibonacci extension of the 151.90-140.24 downleg. Further upside attempts could then come to a halt at the 161.8% Fibo of 159.10. Conquering this barricade, the bulls may attack the April 1990 high of 160.40.
On the flipside, if the pair experiences a pullback, initial support might be found at the 123.6% Fibo of 154.63. Lower, the November 2023 high of 151.89 could prove to be the next barrier for the bears to overcome. Failing to halt there, the price could descend towards the April support of 150.76.
In brief, USDJPY has been posting a series of consecutive multi-year highs, but the advance is starting to look overdone from a technical perspective.
USDJPY trades at its highest level since April 1990
Momentum indicators flag extremely overbought conditions
For now, Japanese authorities seem reluctant to intervene
USDJPY has been in a steady uptrend after finding its feet near the 200-day simple moving average (SMA) in early March. On Thursday, the pair posted a fresh 34-year peak, extending its rally within a territory that the Japanese authorities were expected to defend.
Should bullish pressures persist, the price could storm to fresh multi-year highs before it challenges 154.64, which is the 123.6% Fibonacci extension of the 151.90-140.24 downleg. Further upside attempts could then come to a halt at the 161.8% Fibo of 159.10. Conquering this barricade, the bulls may attack the April 1990 high of 160.40.
On the flipside, if the pair experiences a pullback, initial support might be found at the 123.6% Fibo of 154.63. Lower, the November 2023 high of 151.89 could prove to be the next barrier for the bears to overcome. Failing to halt there, the price could descend towards the April support of 150.76.
In brief, USDJPY has been posting a series of consecutive multi-year highs, but the advance is starting to look overdone from a technical perspective.
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