JPY Technical Forecast: USD/JPY Looking to Continue Rallying
JPY Technical Outlook
- USD/JPY rising off trend-line from yearly low
- Upward momentum may continue this week
- 4-hr chart has a noteworthy trend-line in play
JPY Technical Forecast: USD/JPY Trying to Reassert Uptrend
The week before last, USD/JPY sank into trend-line support from the current yearly low created in January. Since then, we have seen some strong momentum develop that could continue into the week ahead.
With how USD/JPY has been trading it wouldn’t be surprising to see very shallow retracements. Looking at price action since February, it has largely been smooth in both directions. Even as such, allowing for short-term retracements may provide the best risk/reward opportunities as chasing can lead to getting chopped up on short-term shakeouts.
With that in mind, when we drop down to the 4-hr chart we can see a trend-line developing off the April low. This could act as a guide for entering on minor dips and providing a threshold from which to measure risk.
A breakdown below the daily trend-line and 10843 is needed at this point to really shake the tree on a bullish stance. Looking higher from here, the next level to keep an eye on lies just shy of the 11000 mark. But if true momentum comes in, we might not see USD/JPY suffer much of a pullback until the recent highs near 11100.
USD/JPY Daily Chart
USD/JPY 4-hr Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.