USDJPY has displayed a significant bullish move, potentially breaking out of a recent range. This analysis examines the technical situation and explores potential scenarios for the currency pair.
USDJPY Breaches Resistance:
- Upside Breakout or Further Consolidation? USDJPY has decisively broken above the resistance level at 154.78, extending its uptrend that began at 150.80. This breakout suggests a potential upside continuation or even a breakout from a recent consolidation phase.
Uptrend Confirmation and Targets:
- Uptrend On Track: As long as the price remains above the rising trend line support on the 4-hour chart, the uptrend from 150.80 is likely still in play.
- Next Target in Sight: In this scenario, the next potential target zone to watch could be around the 157.00 area.
Support Levels to Consider:
- 155.00 Initial Support: The initial support level to monitor is at 155.00. A pullback to this level could be a normal fluctuation within the uptrend.
- Trend Line Support as Key Hurdle: A more significant development would be a breakdown below the rising trend line. This could indicate that a lengthier consolidation phase for the longer-term uptrend from 146.47 is underway.
- Deeper Pullback Possible: In a consolidation scenario, the next potential support level could be at 153.58.
Overall Sentiment:
The technical outlook for USDJPY has turned bullish in the short term. The breakout above 154.78 strengthens the uptrend. However, close monitoring of price action around the rising trend line and the support levels is essential. A break below the trend line would suggest a potential pause in the uptrend, while a sustained move above 155.00 reinforces the bullish momentum.