USD/JPY Price Analysis: Seesaws near the YTD high, around 136.20s
|- The USD/JPY printed a new YTD high and would test 137.00, achieving a daily close above 136.00.
- The 20-DMA crossing above the 50-DMA exacerbated the USD/JPY Friday’s rally above 136.00.
The USD/JPY drops from around YTD highs around 136.55 and hits a daily low of 135.91 before reclaiming the 136.00 figure on Monday. At the time of writing, the USD/JPY falls 0.29%, trading at around 136.20s, underpinned by US bond yields, namely the 10-year benchmark note rate, down three basis points (bps) at 3.918%.
After breaking the year’s previous high at 134.77, the USD/JPY printed another leg-up to the new YTD high at 136.55 before aiming toward the current spot price. From a technical perspective, the USD/JPY is still upward biased, backed by the Relative Strength Index (RSI) in bullish territory and the Rate of Change (RoC), suggesting that in the last three days, buyers have emerged.
Also, the 100-day Exponential Moving Average (EMA) was the last solid resistance level at 134.79, which, once conquered, exacerbated a 160 pip rally to the new YTD high. Traders should be aware that the 20-day EMA at 133.46 crossed above the 50-day EMA at 133.36. Hence, the USD/JPY could accelerate as the 20-day EMA closes the 200-day EMA At 133.86.
As the USD/JPY path of least resistance is upwards, the pair’s next ceiling level would be the 137.00 figure. Break above will expose the December 20 daily high of 137.47 before putting into play the December 15 high at 138.02. As an alternate scenario, the USD/JPY first support would be the 136.00 figure, ahead of today’s low at 135.91.
USD/JPY Daily chart
USD/JPY Key technical levels
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.