Hello traders, The USDJPY currency pair - D1 period chart. The wave structure on this higher period is forming an upward pattern, with the MACD indicator also in the overbought zone and above its signal line. In the current month of December, there was a double attempt to push the price down, with a horizontal support level at 154.37 blocking the way, which the price failed to break through despite trying. A double bottom reversal pattern formed within the overall uptrend, signaling a rise. It seems that there are enough sellers accumulated to push the price further upwards. Most likely, the price is aiming to retest the previous 2024 high, around 162.14. This peak is not visible on the daily chart, but it is clearly visible on the weekly chart. Presumably, the price will first break above this year's high from January. At that point, a growth pause is likely as bearish divergences form on the indicators. New sellers will gather upon seeing this divergence, causing a minor pullback to trap them before continuing towards the 2024 high. Only after that, a price reversal on the daily period and a full downward correction can be expected. Until that target is reached, it is best to consider only long positions for trading on shorter timeframes. Overall, in relation to the major currency pairs, in my opinion, the US dollar is set to strengthen in the near future. It has indeed strengthened significantly over the past few months, with minimal downward corrections. This may be related to the fact that the cheap Japanese currency somehow benefits Japan, leading them to intentionally weaken it. Even the reduction in the Federal Reserve's interest rates, which should theoretically weaken the dollar, did not yield results. The 2024 high is not just the peak of that year, but also a historical high for the entire observable history in the terminal, which I believe will be updated soon.
