USD/JPY Technical Analysis: Strong Bullish Momentum

(MENAFN- Daily Forex) In recent technical analyses, amid a strong and sharp bullish momentum for the usd/jpy currency pair, it indicated that the technical indicators moved towards strong overbought levels. It is possible to sell to take profits at any time, especially since the gains of the USD/JPY currency pair reached the resistance level of 140.93. Japanese intervention in the markets stop the collapse of the Japanese yen.

For two days in a row, the USD/JPY currency pair was exposed to profit-taking sales that pushed it towards the 139.31 level, before settling around the 139.60 level at the time of writing the analysis. What helped the gains of the Japanese yen, the statements of the Japanese Deputy Minister of Finance for International Affairs, Masato Kanda. A Reuters report stated, "We will closely monitor the movements of the forex currency market and respond appropriately as needed."“If necessary, we will not rule out any available options.”

The Japanese yen had previously fallen to some of its weakest levels since October, a period when the Fed's monetary policy stance was at its most hawkish and dangerous for the Japanese currency. There was at least one official intervention to support the currency late last year and several verbal ones, which often led to gains for non-dollar currencies and were sometimes followed by large increases in interbank JPY turnover.

Advertisement take advantage of today's market opportunities start trading now Forecasts of the US dollar against the Japanese yen today:
  • Despite the recent selling, the general trend of the USD/JPY currency pair is still bullish.
  • The psychological resistance area of 140.00 confirms the bulls' strong control over the trend.
  • Renewed gains for the currency pair must be dealt with in search of a strong selling opportunity, as buying from sharp peaks is risky.
  • Currently, the closest resistance levels for the currency pair are 140.20 and 141.00, respectively.

On the other hand, according to the performance on the daily chart below, there will be no breach of the bullish trend of the USD/JPY currency pair without moving towards the support levels of 138.80 and 137.00, respectively. The currency pair will be affected today by the announcement of the first US jobs data and whether or not investors are willing to take risks. In preparation for the most important event, which is the announcement of the US job numbers at the end of this week's trading.

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