USDJPY continues its upward journey, but is a further rally imminent, or is a period of consolidation or even a pullback brewing? Let’s analyze the technicals to understand the potential scenarios.
Uptrend Intact: Consolidation or Further Gains?
- Rallying from Base: USDJPY remains within the uptrend that began at 145.89. The recent pullback from 150.88 is likely a healthy consolidation phase within this uptrend.
- Upside Potential: As long as the price stays within the rising price channel on the 4-hour chart, the uptrend is likely to continue. The next target to watch in this scenario is the 151.90 resistance level.
Support Levels to Monitor for Downturn
- Key Support: The crucial support level to watch is 149.52. A breakdown below this level would signal a potential end to the current upside move, suggesting a retracement towards the next support zone around 147.80.
Overall Sentiment
The technical picture favors a bullish outlook for USDJPY in the near term. The uptrend remains intact, and further gains towards 151.90 are possible as long as the price stays within the rising channel. However, a break below 149.52 could indicate a potential downside move towards 147.80 or lower.