USDJPY Weekly Analysis – May 21, 2023

The USDJPY currency pair has recently exhibited a significant move, breaking above the key resistance level at 137.90. This breakout suggests that the downward correction from 151.94 has likely concluded at the 127.21 level, opening the door for further potential upside in the coming weeks.

Traders are now anticipating a continuation of the upward momentum, with the next target set at the 142.00 area. As the pair gathers strength and establishes a positive trend, market participants will closely monitor price action and key levels to gauge the sustainability of the upward move.

In terms of support levels, 135.00 serves as the initial support level to watch. It is followed by the rising trend line on the weekly chart, which has provided reliable support. As long as the price remains above this trend line, the bullish sentiment may persist, signaling the potential for further gains.

However, it is crucial to remain cautious and monitor any potential shifts in market dynamics. A break below the trend line support would warrant attention as it could trigger another round of selling pressure, potentially leading the pair towards the 118.00 support level.

In summary, the USDJPY currency pair has broken above a significant resistance level, signaling the completion of the downward correction. Traders are now looking for further upside movement, with the next target at the 142.00 area. Support levels at 135.00 and the rising trend line will be closely watched, as they can provide guidance on the pair’s overall trend. Stay attentive to market developments and adjust trading strategies accordingly to capitalize on potential opportunities.