Technical Summary
Bulls are still insatiable and are now focusing on the important resistance at 132.903.
On the D1 time frame, the USDJPY currency pair has been in a protracted downturn until a last lower bottom was observed at 127.218 on January 16.
The Momentum Oscillator crossed over the 100 baseline into positive territory as the currency pair broke through the 15 and 34 Simple Moving Averages at the bottom at 127.218.
USD/JPY Resistance and Support Levels
A higher peak, which was attained on February 6 at 132.903, was identified as a potential key resistance level. The market’s bears are presently attempting to regain control, but they will need to break through a weekly support level at 130.476 to do so.
There are three potential price objectives from the USDJPY’s break through of the key resistance level at 132.903 that may be taken into consideration. The objectives below may be generated by connecting the Fibonacci tool to the higher peak at 132.903 and moving it to the weekly support level close to 130.476.
The second price objective is predicted to be around 136.830 (261.8%), but to get there, a weekly resistance level of roughly 135.092 must be overcome. In order to achieve the third and final objective, which is expected to be around 140.757 (423.6%), a weekly resistance level of roughly 139.500 must be broken.
The aforementioned scenario is no longer plausible if the support level at 130.476 is breached.
The forecast for the USDJPY on the D1 time frame will remain optimistic if the bulls maintain their momentum and demand outweighs supply.