USDJPY started Wednesday’s session with some fatigue after its explosive bullish run hit a wall near the crucial resistance of 113.78 from November 2018.


Following a four-day winning streak, some profit-taking would be normal, with the RSI and the Stochastics endorsing the potential for a downside reversal as the indicators look set to shift south within the overbought area.

The price, however, has comfortably distanced itself above its previous highs of 112.07 and 111.65, building enough space for the bulls to resurface even if a downside correction takes place.

Looking for pivot points, the 113.00 level, which supported yesterday’s rally, could come first into view. Failure to hold above it could see the price decelerating towards the steep ascending trendline currently seen around 112.30 and near the red Tenkan-sen line. Then, a clear close below 112.00 would dampen sentiment, probably strengthening selling pressures towards the restrictive zone of 111.47 – 111.20, where the 20-day simple moving is also positioned.

Long-term traders, however, would not get discouraged unless the pair crosses below the tentative dashed upward-sloping trendline drawn from 2020 lows.

In the event buying forces push the price above the 114.00 resistance, all eyes will turn to the 2018 top of 114.54. The 115.00 mark will be the next target if the rally stretches higher.

Summarizing, USDJPY could give up some gains on profit-taking in the short-term, though only a break below 112.30- 112.00 would reduce confidence on the latest impressive upleg.



Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more