USD/JPY Price Analysis: Firm above 138.00 on Fed hawkish comments, boosting the US Dollar

USD/JPY pair underpinned by high US T-bond yields, strong US Dollar.
Despite last week’s negative outcome, the USD/JPY clings to gains above a five-month-old support trendline.
Upside risks lie at 138.74, followed by 139.00; support is seen at 137.20s, 137.00.

Christian Borjon Valencia FXStreet

USD/JPY resumes its uptrend, creeping higher above the 138.00 figure as the US Dollar (USD) strengthens, underpinned by higher US Treasury bond yields. Hawkish comments by Federal Reserve (Fed) officials, and positive discussions on the US debt ceiling, keeps the USD/JPY pair trading higher. Hence, the USD/JPY is trading at 138.51, a gain of 0.43%.

USD/JPY Price Analysis: Technical outlook

After finishing the last week with a negative session, the USD/JPY is still trading above a five-month-old resistance trendline, which turned support on May 18, which opened the door to a new year-to-date (YTD) high of 138.74, before a pullback to 137.25. The USD/JPYs bounced off that level and reclaimed the 138.00 figure.

Of note, the USD/JPY reached a new higher-high, while the Relative Strength Index (RSI) did not, peaking around 69.00 before entering overbought conditions, retraced towards the 65.00 area, suggesting buyers are losing momentum. The 3-day Rate of Change (RoC) it’s declining as buyers lose steam.

If USD/JPY breaks above the YTD high at 138.74, the next resistance would be the 139.00 figure, a zone that could propel the pair towards the 140.00 area, but buyers must crack the November 30 daily high of 139.89.

On the other hand, the USD/JPY first support would be 138.00. Break below will expose the May 18 low of 137.28 before challenging the 137.00 mark.

USD/JPY Price Action – Daily chart

USD/JPY

Overview
Today last price	138.5
Today Daily Change	0.53
Today Daily Change %	0.38
Today daily open	137.97

Trends
Daily SMA20	135.57
Daily SMA50	133.87
Daily SMA100	133.14
Daily SMA200	137.12

Levels
Previous Daily High	138.73
Previous Daily Low	137.43
Previous Weekly High	138.75
Previous Weekly Low	135.65
Previous Monthly High	136.56
Previous Monthly Low	130.63
Daily Fibonacci 38.2%	137.93
Daily Fibonacci 61.8%	138.23
Daily Pivot Point S1	137.35
Daily Pivot Point S2	136.74
Daily Pivot Point S3	136.05
Daily Pivot Point R1	138.66
Daily Pivot Point R2	139.35
Daily Pivot Point R3	139.96

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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