USD/JPY: Rally faces the next resistance at 120.40 – UOB

Pablo Piovano FXStreet

Further gains in USD/JPY now face the next hurdle at the 120.40 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘there is room for USD to test 119.45 first before easing off’. USD subsequently rose to 119.49 before closing on a firm note at 119.47 (+0.25%). USD rose above the major resistance at 120.00 during early Asian hours and the rapid improvement in momentum is likely to lead to further USD strength. The next resistance is at 120.40. Support is at 119.60 followed by 119.30.”

Next 1-3 weeks: “We have expected a higher USD for more than a week now. In our latest narrative from yesterday (21 Mar, spot at 119.20), we indicated that the chance for USD to rise above 119.70 has increased. USD not only rose above 119.70 during early Asian hours but also edged above 120.00. Further USD strength is not ruled out but deeply overbought conditions suggest a slower pace of advance from here. The next resistance is at 120.40. Overall, only a breach of 118.90 (‘strong support’ level was at 118.30 yesterday) would indicate that the current strong upward pressure has eased.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD consolidates below 1.1700 as markets turn risk-averse

EUR/USD struggles to stage a rebound and trades near the lower limit of its weekly range below 1.1700 on Thursday. The US Dollar benefits from the cautious market stance and doesn't allow the pair to gain traction ahead of mid-tier data releases.

GBP/USD stays in red near 1.3450 on broad USD resilience

GBP/USD stays on the back foot after posting losses for two consecutive days and trades near 1.3450 on Thursday. The souring market mood amid simmering geopolitical tensions make it difficult for the pair to gain traction as focus shift to the the US labor market data.

Gold sticks to intraday losses below $4,450; seems vulnerable to slide further

Gold maintains its offered tone through the first half of the European session and currently trades near the lower end of its daily range, down for the second straight day. The downfall lacks any obvious fundamental catalyst and could be attributed to some follow-through profit-taking ahead of the release of the US Nonfarm Payrolls report on Friday.

Pi Network flashes bearish potential as selling pressure mounts

Pi Network trades above $0.2000 at press time on Thursday, following a nearly 2% decline the previous day. Centralized Exchanges have received 1.90 million PI tokens over the last 24 hours, suggesting risk-off sentiment among holders. The technical outlook for the PI token remains bearish, with a risk of a cross below the 20-day Exponential Moving Average.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.