USD/JPY Price Analysis: Advances modestly and reclaims 157.00
- USD/JPY touches two-week high at 157.15, reflecting continued upward momentum.
- Technical analysis shows prices well above Ichimoku Cloud, indicating strong bullish signals.
- Potential interventions by Japanese authorities create caution among traders eyeing higher positions.
The USD/JPY wavers around 157.00 as the Greenback remains steady in Tuesday’s session. The rise in the US 10-year Treasury bond yields underpins the major, which trades at 157.14 after hitting a two-week high of 157.15.
USD/JPY Price Analysis: Technical outlook
From a technical perspective, the USD/JPY is upward biased, as evidenced by successive series of higher highs and lows and price action standing above the Ichimoku Cloud (Kumo). Additionally, the spot price is also above the Tenkan and Kijun-Sen, a further indication of bulls’ strength. Yet intervention threats by Japanese authorities kept buyers at bay instead of committing to open fresh long positions.
As the USD/JPY cleared the 157.00 figure, further gains are foreseen. The first resistance level would be the April 26 high at 158.44, followed by the year-to-date (YTD) high at 160.32.
Conversely, if it stumbles below 157.00, look for a pullback below the confluence of the Tenkan-Sen at 156.05, which will sponsor a leg down. The next key support levels emerge at the Senkou Span A at 155.72, followed by the Kijun-Sen at 155.39, ahead of the 50-day moving average (DMA) at 154.08.
USD/JPY Price Analysis: Technical outlook
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
