USD/JPY Price Analysis: Triple-bottom target reached, as it meanders around 117.00
- The USD/JPY is set to end the week with gains close to 2%.
- The triple bottom chart pattern was fulfilled once the USD/JPY reached a YTD high above 117.00.
- USD/JPY Technical Outlook: Upward biased, but downside risks remain as a 24-year-old downslope trendline near 117.00 looms.
The USD/JPY is ready to finish the week on a higher note, on a risk-on market mood, underpinned by higher US Treasury yields, led by the 10-year T-note sitting at 2.01%. At the time of writing, the USD/JPY is trading at 117.00.
Risk appetite increased during the European session when Russian President Putin expressed that has been a “certain positive shift” in talks with Ukraine while keeping hopes of a possible meeting with his counterpart, the Ukrainian President Zelensky, alive.
Aside from this, the greenback remains firm during the North American session. The US Dollar Index, a gauge of the buck’s performance vs. a basket of six rivals, keeps heading north, up 0.23%, sits at 98.756, a tailwind for the pair.
Overnight, the USD/JPY followed the path of least resistance, continuing the uptrend. It is worth noting that the triple-bottom chart pattern target at 117.00 was fulfilled, as the pair’s daily high, which also is a YTD high was 117.06.
USD/JPY Price Forecast: Technical outlook
The USD/JPY remains upward biased, though traders need to be aware of a trendline that travels from August 1998 highs, a 24-year-old downslope trendline, which could be difficult resistance to overcome by USD/JPY bulls.
That said, the USD/JPY first resistance would be 117.00. Breach of the latter would expose the 118.00 mark, followed by January 17, 2021, high at 118.61, and then the 119.00 mark.
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.
