Technical Analysis – USDJPY flies to new 34-year high
April 10, 2024 1:27 pm
Will USDJPY test 153.00 soon?
RSI and stochastics enter overbought regions
USDJPY is skyrocketing towards a fresh 34-year high of 152.50 after the US CPI data. The market exited from the narrow range that was in during the previous 20 days with the technical oscillators confirming an upside tendency again. The RSI is crossing above the 70 level and the stochastics are moving towards the overbought region.
If the market extends its upside movement, the next resistance to watch is the 153.00 psychological level and even higher the next round numbers such as 154.00 and 155.00. More bullish pressure may be found on the 161.8% Fibonacci extension level of the down leg from 151.95 to 140.20 at 159.15.
On the flip side, a downside retracement could find immediate support at the 20-day simple moving average (SMA) at 151.25 ahead of the 150.87 bottom and the 50-day SMA around the 150.00 handle, which overlaps with the ascending trend line. Below that, the next support to have in mind is the 200-day SMA at 147.30 which may act as a turning point for traders.
Summarizing, USDJPY received a boost today, which turned the short-term neutral phase to a bullish again. Therefore, a closing day above the previous peak, would endorse the upward move.
Will USDJPY test 153.00 soon?
RSI and stochastics enter overbought regions
USDJPY is skyrocketing towards a fresh 34-year high of 152.50 after the US CPI data. The market exited from the narrow range that was in during the previous 20 days with the technical oscillators confirming an upside tendency again. The RSI is crossing above the 70 level and the stochastics are moving towards the overbought region.
If the market extends its upside movement, the next resistance to watch is the 153.00 psychological level and even higher the next round numbers such as 154.00 and 155.00. More bullish pressure may be found on the 161.8% Fibonacci extension level of the down leg from 151.95 to 140.20 at 159.15.
On the flip side, a downside retracement could find immediate support at the 20-day simple moving average (SMA) at 151.25 ahead of the 150.87 bottom and the 50-day SMA around the 150.00 handle, which overlaps with the ascending trend line. Below that, the next support to have in mind is the 200-day SMA at 147.30 which may act as a turning point for traders.
Summarizing, USDJPY received a boost today, which turned the short-term neutral phase to a bullish again. Therefore, a closing day above the previous peak, would endorse the upward move.
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