USDJPY Weekly Analysis – May 27, 2023

The USDJPY currency pair has displayed a strong bullish momentum, extending its upside movement from 127.21 to reach as high as 140.72. This upward surge indicates that the bulls remain in control and suggests the potential for further gains in the near term.

Traders can anticipate a continuation of the upward trajectory, with the next target set at 142.00, followed by 145.00. These levels represent significant resistance points where sellers may look to enter the market or take profits, potentially leading to temporary pullbacks or consolidation phases.

In terms of support, the near term level to watch is at 139.00, followed by 137.90. A break below these supports could signal a retracement and bring the price back towards the rising trend line on the weekly chart. The trend line serves as a key support level and a breach below it would suggest a potential shift in market sentiment, possibly leading to further downside movement towards 118.00.

In conclusion, the USDJPY pair has maintained its upward momentum, with further gains expected in the near term. Traders should keep an eye on the 142.00 and 145.00 resistance levels as potential targets. However, a break below the 139.00 and 137.90 support levels could trigger a retracement towards the rising trend line on the weekly chart, and a breach of the trend line support may indicate a deeper decline towards 118.00. Staying informed, practicing sound risk management, and monitoring price action are essential for navigating the USDJPY pair during this period of bullish sentiment.