USD/JPY Technical Outlook:Neutral
- USD/JPY pullback may continue in the near-term
- 1998 high over 14700 looks poised to get tested at some point
Japanese Yen (JPY) Technical Outlook: USD/JPY Trading Near 1998 High
The USD/JPY strength we saw last week carried the price up towards the 1998 high at 14767 before stalling out right around 14500. The stall and revers has a minor reversal week carved out, but nothing too bearish-looking.
It could lead to a pullback in the near-term, but another push into long-term resistance is anticipated after some weakness. There is slope support being tested for the first time as support, with the line running up beneath the Friday low arriving from a March pivot that crosses near the May low.
This slope has a couple of other instances that are below that have been influential. The big price level to watch, though, that has even more attention is the July high at 13938. A test and hold of this level would increase a bullish bias.
Horizontal price action from here that digests the recent run would also be considered with short-term levels getting carved out via a range. This could also set up for a bullish bias towards the 1998 high. In the event we get to the 1998 high watch price action closely as it may induce a broader pullback upon a failure.
For now, in wait-and-see mode until the chart cleans itself up a bit and provides some solid directional cues.
USD/JPY Price Daily Chart
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---Written by Paul Robinson, Market Analyst
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