USD/ JPY Price Action Analysis Let's discuss the current analysis of the USD/JPY currency pair's pricing behaviour. Bulls initially tried breaking the resistance for further bullish trend-based movement but faced resistance, leading to a developing pullback. I anticipate a pullback to the pivot level, which could lead to a rebound upwards, powered by fresh momentum or the underlying -100 EMA. If bears anchor below the -100 EMA, it could lead to sales opportunities, targeting consolidation beneath the subsequent -200 EMA, which could trigger an upward bounce. Despite the yen's persistent weakness and the Bank of Japan's passive stance, we maintain a steady upward trajectory in the yen pair, nearing local highs around 155, with potential for further ascent.
The ascending medium-term trend on the 4-hour timeframe remains intact since the last USDJPY technical analysis. The price is above the Ichimoku cloud, signalling bullish sentiment and favouring long positions. Although the Stochastic indicator hovers in the resistance zone, recent sessions have seen sustained bullish movement, with bulls approaching the first short-term trend target near 154.96. Intraday growth benchmarks include classic Pivot resistances, with a potential break above 155.29, triggering a new upward wave towards 155.96. At the moment, there seems to be solid support around the 153.49 level. The overall market sentiment is primarily influenced by the trading activity in the American market, mainly due to the lack of major statistical releases on the horizon. Therefore, traders and investors are closely monitoring the developments in the US market to gauge the direction of the overall market sentiment and make informed trading decisions accordingly. Though I remain cautious of purchasing at current levels, I anticipate opportunities above 155, where I'll monitor for selling signals.
