USDJPY Analysis – May 17, 2023

The USDJPY pair has continued its upward trajectory, with the recent rally pushing the price as high as 136.67. This extension of the upside movement suggests underlying strength in the pair, and further upward momentum could be anticipated in the near term. Traders should be watchful for a potential test of the previous high resistance level at 137.77.

The ongoing bullish momentum in USDJPY indicates that buyers remain in control of the market. As the pair aims higher, the next target to watch is the 137.77 resistance level. If the current bullish sentiment persists, the pair could potentially breach this level and open the door for additional gains.

In terms of immediate support, the USDJPY pair finds a level at 135.46. A temporary pullback or consolidation around this support level cannot be ruled out, as it represents a key area where buyers may step in. However, a breakdown below 135.46 could lead to a retracement towards the next support level at 134.80. Further weakness might target the critical support at 133.49, which holds significant importance for the overall bullish bias.

In conclusion, USDJPY has extended its upside movement, reaching as high as 136.67. The ongoing bullish sentiment suggests the potential for further upward momentum, with the next target at the previous high resistance of 137.77. Immediate support is found at 135.46, while a breakdown below this level could lead to a retracement towards 134.80. Traders should remain vigilant and adapt their strategies based on evolving market conditions to navigate the USDJPY pair effectively.