Technical Analysis – USDJPY back in the 2023 bull run
August 16, 2023 2:28 pm
USDJPY extended its 2023 uptrend above June’s ceiling to chart a new higher high at 145.85 on Tuesday.
The pair is currently printing another green candlestick ahead of the FOMC meeting minutes due at 18:00 GMT but it keeps hovering within Tuesday’s trading range, reflecting some easing in buying appetite. Technically, some consolidation or a downside correction is possible as the RSI is flirting with its 70 overbought mark, while the stochastic oscillator has unlocked a new high above its 80 overbought level.
Traders, however, would like stronger signals before they take some profits. The uptrend in the market is not showing serious cracks, keeping the focus on the 146.40 barrier from last November. A decisive close higher could clear the way towards the 1998 top of 147.70 and the tentative resistance line from March at 148.00. If buying appetite further strengthens, the spotlight will fall on the 150.00 round-level.
On the flip side, a downside correction could initially retest the 145.00-144.70 zone. If this base collapses, the price could next challenge 20-day exponential moving average (EMA) at 143.30 ahead of the 50-day EMA at 141.65. A break lower from there may stall around the March support trendline at 139.40, while a stronger decline could halt around the 200-day EMA at 137.65.
All in all, USDJPY seems to be losing impetus after eight days of continuous moderate increases. While a pause is likely, the ongoing uptrend is still looking firm and could keep buyers active in the market.
USDJPY extended its 2023 uptrend above June’s ceiling to chart a new higher high at 145.85 on Tuesday.
The pair is currently printing another green candlestick ahead of the FOMC meeting minutes due at 18:00 GMT but it keeps hovering within Tuesday’s trading range, reflecting some easing in buying appetite. Technically, some consolidation or a downside correction is possible as the RSI is flirting with its 70 overbought mark, while the stochastic oscillator has unlocked a new high above its 80 overbought level.
Traders, however, would like stronger signals before they take some profits. The uptrend in the market is not showing serious cracks, keeping the focus on the 146.40 barrier from last November. A decisive close higher could clear the way towards the 1998 top of 147.70 and the tentative resistance line from March at 148.00. If buying appetite further strengthens, the spotlight will fall on the 150.00 round-level.
On the flip side, a downside correction could initially retest the 145.00-144.70 zone. If this base collapses, the price could next challenge 20-day exponential moving average (EMA) at 143.30 ahead of the 50-day EMA at 141.65. A break lower from there may stall around the March support trendline at 139.40, while a stronger decline could halt around the 200-day EMA at 137.65.
All in all, USDJPY seems to be losing impetus after eight days of continuous moderate increases. While a pause is likely, the ongoing uptrend is still looking firm and could keep buyers active in the market.
Related Posts: