Technical Analysis – USDJPY climbs above key barrier of 135.40
May 15, 2023 1:26 pm
USDJPY surged and broke above the key resistance barrier of 135.40 on Friday, after rebounding on Thursday from slightly below the uptrend line drawn from the low of March 24. Combined with the fact that the pair is also trading above all three of the plotted exponential moving averages (EMAs), this keeps the short-term picture positive.
The bullish outlook is also confirmed by the short-term oscillators, both of which are detecting upside momentum. The RSI is lying near its 70 line and is pointing up, while the MACD is running above both its zero and trigger lines, pointing north as well.
The break above the 135.30 barrier may have opened the door towards the next key hurdle of 137.80, which has been blocking the bulls since early December. If they are strong enough to pierce through that ceiling this time around, a higher high will be confirmed on bigger timeframes, and the upleg may extend towards the peak of November 30 at 139.90.
On the downside, the break that could signal a short-term reversal may be a dip below the 133.75 zone, which offered support last week. Such a move would also take the pair below the aforementioned uptrend line and perhaps initially aim for the low of April 26 at 133.00. If the bears are not willing to stop there, then a break lower may see scope for extensions towards the low of April 13 at 132.00.
To sum up, USDJPY has been in an uptrend since March 24, with the bulls now seem willing to aim once again for the key hurdle of 137.80. Nonetheless, a break above that barrier may be needed to signal a trend continuation on bigger timeframes.
USDJPY surged and broke above the key resistance barrier of 135.40 on Friday, after rebounding on Thursday from slightly below the uptrend line drawn from the low of March 24. Combined with the fact that the pair is also trading above all three of the plotted exponential moving averages (EMAs), this keeps the short-term picture positive.
The bullish outlook is also confirmed by the short-term oscillators, both of which are detecting upside momentum. The RSI is lying near its 70 line and is pointing up, while the MACD is running above both its zero and trigger lines, pointing north as well.
The break above the 135.30 barrier may have opened the door towards the next key hurdle of 137.80, which has been blocking the bulls since early December. If they are strong enough to pierce through that ceiling this time around, a higher high will be confirmed on bigger timeframes, and the upleg may extend towards the peak of November 30 at 139.90.
On the downside, the break that could signal a short-term reversal may be a dip below the 133.75 zone, which offered support last week. Such a move would also take the pair below the aforementioned uptrend line and perhaps initially aim for the low of April 26 at 133.00. If the bears are not willing to stop there, then a break lower may see scope for extensions towards the low of April 13 at 132.00.
To sum up, USDJPY has been in an uptrend since March 24, with the bulls now seem willing to aim once again for the key hurdle of 137.80. Nonetheless, a break above that barrier may be needed to signal a trend continuation on bigger timeframes.
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