USDJPY Price Well Placed to Extend its Gains Near-Term
USDJPY price, charts and analysis:
- USDJPY has been climbing rapidly for more than two weeks and looks likely to advance further.
- After strengthening for five successive sessions, a steep trend higher is now firmly in place.
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USDJPY chart positive
The USDJPY price has been strengthening for more than a month now and its advance has been gathering strength recently, suggesting there could be further gains on the way near-term. As the daily USDJPY chart below shows, there is now little resistance until the July 19 high at 113.18 is reached, and, if that is breached, there is little to stop it from reaching trendline resistance, currently at 113.48.
If that too can be overcome, then the next target would be the 2017 high at 114.74.
USDJPY Price Chart, Daily Timeframe (April 1 – September 25, 2018)
Meanwhile, there is now strong support to the downside. First up is trendline support at 112.36, followed by a series of moving averages and further trendlines. Moreover, despite its recent gains, the pair is not yet overbought, with the 14-day relative strength index still below 70.
The uptrend can be seen even more clearly on the one-hour chart below, which shows little sign of an imminent change of course.
USDJPY Price Chart, One-Hour Timeframe (September 18-25, 2018)
Fundamentally too, the signs are positive, with Bank of Japan Governor Haruhiko Kuroda warning Tuesday that Japanese inflation remains well below the central bank’s target, reinforcing its commitment to keep interest rates low for an extended period.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.