- USD/JPY rally above 134.00 after breaking above the 200 day EMA.
- USD/JPY Price Analysis: Bullish bias, although a daily close above the 200 day EMA could consolidate the uptrend.
USD/JPY rally over 100 points and break above 134.00, breaking north of the 200-day EMA at 133.77, a measure of bullish/bearish bias for an asset. Therefore, USD/JPY turned higher during the session, although a daily close above the 200 day EMA would keep the bulls hoping for further gains. At the time of writing, USD/JPY is trading at 134.28 after hitting a low of 132.54.
From a daily chart perspective, USD/JPY reversed its bullish bias after falling from last year’s high of 151.94 towards the low of 127.21 on January 16. However, USD/JPY needs to break above the confluence of the 100-day EMA and the yearly high at 134.77 to consolidate the uptrend.
The Relative Strength Index (RSI) and the Rate of Change (RoC) show that the buyers are gaining momentum. That is why USD/JPY could test the psychological level of 135.00 in the short term.
The 4-hour chart of USD/JPY shows the pair trending higher, after breaking the consolidation range of 131.70-133.00, with the intention of testing the all-time high at 134.77. Despite the overbought RSI, as long as it remains below 80, USD/JPY shows a strong uptrend. The RoC shows that buyers are in control and could continue the trend.
Therefore, the first resistance for USD/JPY would be the last year high at 134.77. If it breaks it, the pair could reach 135.00, followed by 136.00 and then the daily high of December 19 at 137.47.
USD/JPY 4-hour chart
USD/JPY Key Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
