The USDJPY currency pair has broken out above the key 156.79 resistance level, extending its impressive upside move that originated from the 151.86 low. The rally has carried the pair as high as 157.37 in recent trading sessions, with the bullish momentum showing no signs of letting up.
Further Upside Targets Emerge
Following the breakout above 156.79, the next key resistance levels to watch on the topside are located in the 158.00 and 159.00 areas.If buyers can push the USDJPY above the 158.00 handle, it would open the door for a potential rally toward the 159.00 resistance zone.
Key Support at 156.50
While the technical outlook remains constructive, traders will want to keep a close eye on the 156.50 area as initial support. A breakdown below this level could see the USDJPY retrace back toward the rising trendline support visible on the 4-hour chart.A move below this trendline support would be a significant technical event, likely triggering a more substantial pullback within the broader uptrend from 151.86.
Upside Momentum Remains Strong
For now, the USDJPY uptrend remains firmly in place, with the path of least resistance pointing to further gains toward the 158.00 and 159.00 targets as long as the 156.50 support holds.However, a breakdown below 156.50 and the rising 4-hour trendline would be a significant technical event, likely opening the door for a deeper pullback within the uptrend from 151.86.
Levels to Watch
The key levels to watch in the USDJPY are the 158.00 and 159.00 upside targets, along with the 156.50 support area and the rising 4-hour trendline support.
As long as the pair remains above 156.50, the overall technical bias will remain tilted to the upside, with the potential for a continuation move toward the 159.00 level.
The USDJPY uptrend shows no signs of stalling, with the pair extending its rally above the 156.79 resistance. While further gains appear likely, traders will want to closely monitor the key support levels for potential signs that the bullish momentum could be waning.