USDJPY Analysis – May 18, 2023

The USDJPY pair has experienced a significant breakthrough as it broke above the key resistance level at 137.77. With the breach of the previous high resistance, the USDJPY pair has opened the door for additional gains. As long as the price remains above the rising trend line on the 4-hour chart, traders can anticipate the continuation of the upward move. The next target for the bulls is projected at the 139.00 area.

However, it is important to note that market conditions can change rapidly, and traders should closely monitor the price action and any potential signs of reversal. If the price breaks below the trend line support, it could suggest a completion of the uptrend from the 133.49 level. In such a scenario, downside pressure may increase, potentially leading to a retracement towards the 133.49 support level.

In summary, the USDJPY pair has broken above the significant resistance level at 137.77, indicating a potential continuation of the upward move. With the next target projected at 139.00, traders should monitor the price action and the integrity of the rising trend line for confirmation. Conversely, a breakdown below the trend line support could signal a potential reversal. As always, prudent risk management practices should be employed when trading the USDJPY pair.