USD/JPY Price Analysis: Run-up to weekly top seeks validation from 106.22
|- USD/JPY prints mild gains despite recently easing from intraday top.
- Bullish MACD, five-week-old support portray upside momentum, 200-bar SMA adds to the downside.
- Clear break of February 16-17 highs become necessary for further upside.
USD/JPY prints a three-day uptrend while extending Monday’s bounce off a short-term support line to the weekly top of 106.13, currently around 106.00, during the early Thursday. Although MACD and sustained trading beyond 200-bar SMA offers extra strength to the bulls, highs marked during February 16-17 probe the quote’s further rise.
As a result, USD/JPY buyers should wait for a clear run-up beyond 106.22 before targeting a September high near 106.55 and an August peak surrounding 107.00.
Although the 107.00 is more likely to trigger USD/JPY pullback, any further upside won’t hesitate to eye for the latest swing difference and highlight 107.55 as the upcoming resistance.
Meanwhile, the early month peak surrounding 105.70 can entertain short-term swing traders ahead of directing them to the stated trend line support near 105.00.
It should, however, be noted that the USD/JPY bears will need the validation of extra weakness below 105.00 from 200-bar SMA level of 104.66.
Overall, USD/JPY is in an uptrend but the immediate hurdle needs a clear breakout to be sure.
USD/JPY four-hour chart
Trend: Bullish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.