It’s not always worthy to watch a monthly chart, but this time it is: the USD/JPY stands around 104.90, testing a long term descendant trend line coming from August 1998 high of 147.68. Whilst the pair needs to close the month above it to confirm the break, the fact is that a price extension above it could be a game changer for the USD/JPY that traded in a 500 pips range since the year started.
For the upcoming days, the level to watch will be then 105.43, this year high set in January. A break above it should be enough to confirm a long term upward continuation, towards the 108.60/80 price zone, where the pair has several monthly highs and lows. But what happens if price fails around 105.00? Then the strength of the line will rule, and support a downward correction, towards 102.70/103.30 area.
Shorter term, the 4 hours chart shows indicators exhausted in extreme overbought territory, but the USD/JPY is not a pair that usually cares about it when is on a directional move: a break above 105.10 should lead to a test of mentioned year high of 105.43, while below 104.60 the pair can correct down to 104.20 price zone.
View Live Chart for USD/JPY
For the upcoming days, the level to watch will be then 105.43, this year high set in January. A break above it should be enough to confirm a long term upward continuation, towards the 108.60/80 price zone, where the pair has several monthly highs and lows. But what happens if price fails around 105.00? Then the strength of the line will rule, and support a downward correction, towards 102.70/103.30 area.
Shorter term, the 4 hours chart shows indicators exhausted in extreme overbought territory, but the USD/JPY is not a pair that usually cares about it when is on a directional move: a break above 105.10 should lead to a test of mentioned year high of 105.43, while below 104.60 the pair can correct down to 104.20 price zone.
View Live Chart for USD/JPY
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