USDJPY
The USDJPY currency pair has seen a resurgence of momentum on Tuesday, although it continues to trade within a range that has persisted for four consecutive days. The currency pair's pullback from its 2023 peak of 150.16 has consistently found support at the rising 20-day moving average (20DMA), currently at 148.58, indicating strong buying interest. The broader uptrend from the 2023 low of 127.22 remains unbroken, and the near-term price action suggests a minor correction before the bulls take over once again.
A close above the 10-day moving average (10DMA) at 149.12 would provide an initial bullish signal, paving the way for a retest of key resistance levels at 150.00 (a psychological level) and 150.16 (the high for 2023). These levels are just below the peak for 2022 and a multi-decade high of 151.94.
The daily chart shows strong positive momentum, with the Tenkan-sen and Kijun-sen lines in a bullish configuration. The price action is also supported by a rising and thickening daily Ichimoku cloud, keeping the focus on further upside potential.
However, traders should be cautious if the price breaks below the 20DMA, as this would weaken the near-term structure. A move and close below the spike low of 147.29 from October 3rd would be required to sideline the bulls and signal a deeper correction.
Resistance levels to watch are at: 149.12; 149.53; 150; and 150.16.
Support levels to watch are at: 148.00; 147.29; 146.1; and 145.9.
Source: fxnews.me