August 19, 2022 12:21 AM ET
By: AnalysisWatch
The USD/JPY is on a four-day uptrend and is approaching the monthly high of 136.40 early Friday morning in Europe. In doing so, the yen pair is justifying the previous day's upside breach of the month-old horizontal zone as well as the 50-DMA.
In addition to the previous key hurdles being breached, bullish MACD signals are also preventing USD/JPY buyers from refreshing the monthly high. However, the RSI is approaching overbought territory and suggests limited room to move north.
As a result, a broad horizontal zone comprising several marked levels since June 29, between 137.00 and 137.45, should hold the market's attention.
A clear upward break of the 137.45 level, on the other hand, will not hesitate to re-establish the annual high set in July around 139.40.
Instead, the resistance area turned support near 135.60 precedes the 50-DMA support of 135.45 to limit the short-term decline of USD/JPY.
Next, an upward sloping support line from August 11 near 134.15 will be in focus.
If USD/JPY bears manage to conquer the 134.15 level, the 134.00 round figure could serve as a validation point for the southward descent targeting the August 11 low near 131.75.
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