- USD/JPY falls to an important trend line and finds support.
- It remains in an uptrend that could resume and rise further.
USD/JPY has retreated to the support of an important trend line for the long-term uptrend around 152.55. Despite the correction, the pair is in an uptrend in the short and medium term and given the dictum of technical analysis that “the trend is your friend”, the odds still favor a recovery and eventual continuation higher.
USD/JPY 4-hour chart
A break above the November 7 high at 154.71 would renew the uptrend and likely lead to a continuation to resistance at 155.24, the July 30 high. A break above that level would provide a stronger bullish signal and could lead to a target at 157.86 (July 19 high).
Alternatively, a break below the trend line and then also below 151.29 could indicate a short-term bearish trend reversal. Such a move could continue down to a target at 150.15 where support from the 100-day SMA comes into play (not shown).
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.
