USD/JPY Price Analysis: Bullish Flag assures continuation of a dream run, 147.00 eyed
- USD/JPY has kissed 145.00 for the first time in 24 years after a dovish stance by the BOJ.
- A formation of a bullish is hinting at the continuation of upside momentum.
- Advancing 20-and 50-EMAs add to the upside filters.
The USD/JPY pair has turned sideways after delivering volatile moves post the announcement of the interest rate decision by the Bank of Japan (BOJ). The asset gyrated in a tad wider range of 143.51-145.36 and is now oscillating in a narrow range of 144.54-144.95. On a broader note, the asset is oscillating in a 141.50-145.40 range for the past two weeks. It is worth noting that the major has smashed 145.00 for the first time in the past 24 years.
The formation of a Bullish Flag denotes a consolidation phase after a vertical upside move. The north-side sheer move is been recorded from August 2 low at 130.40. The consolidation phase of a Bullish Flag indicates an initiative buying structure in which the buyers initiate longs after an upside break of the chart pattern.
The 20-and 50-period Exponential Moving Averages (EMAs) at 142.00 and 139.00 respectively are aiming north, which signals a continuation of an upside bias.
Also, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00 for a prolonged period, which indicates that the upside momentum is intact.
A decisive break above the fresh 24-year high at 145.40 will drive the asset towards June 1998 high at 146.79, followed by August 1998 high at 147.67.
On the flip side, the greenback bulls could lose their grip if the asset drops below September 9 low at 141.50 for a downside towards September 6 low at 140.25. Slippage of the latter will drag the asset towards July 14 high at 139.39.
USD/JPY daily chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
