USDJPY on the Rise: Uptrend Continuation or Correction?

USDJPY continues its upward journey, staying within a rising price channel on the 4-hour chart. This suggests the uptrend initiated at 145.89 remains intact. Let’s dive into the technicals to understand the potential scenarios for the pair’s near-term direction.

Uptrend Momentum: Will It Hold?

  • Rising Channel: As long as the price stays within the confines of the rising channel, the uptrend is likely to persist. This indicates potential for further upside movement.
  • Breakout Opportunity: If the bullish momentum intensifies and the price breaks above the current resistance at 150.88, the next target to watch could be 151.90, further strengthening the uptrend.

Support Levels to Watch for Downturn

  • Channel Support: A breakdown below the lower boundary of the rising channel would signal a potential shift in momentum and could trigger a pullback. This could lead to a retest of the 149.52 support level.
  • Trend Reversal or Correction?: Breaching 149.52 support would significantly weaken the uptrend and suggest a potential trend reversal. In this scenario, the next support area to watch could be around 147.50. However, it’s important to note that breaking below the channel support might also indicate a healthy correction within the larger uptrend, rather than a complete trend reversal.

Overall Sentiment

The technical picture for USDJPY leans bullish in the near term. The uptrend remains in play as long as the price stays within the rising channel. A breakout above 150.88 could propel the pair towards higher resistance levels, while a breakdown below the channel support could lead to a pullback or potentially a trend reversal. Monitoring the price action around the mentioned support and resistance levels will be crucial in confirming the pair’s next move.