USD/JPY Eyes Pushing to Multi-Month High – US Dollar to JPY Price Forecast
USD to JPY Price Technical Analysis
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USD/JPY – Buyers Still in Charge
On Nov 7, USD/JPY rallied to 109.48- its highest level in over five months. Later, the price slipped back and settled below 109.00 handle. This week, the pair has opened with upwards gap indicating to the bullish outlook of the market at this stage.
Since Nov 15, the Relative Strength Index (RSI) remained flat above 50 then rose to 59 indicating that uptrend momentum is still intact.
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USD/JPY Daily PRice CHART (DEC 20, 2016 - Nov 27, 2019) Zoomed Out
USD/JPY Daily Price CHART (April 27 - Nov 27, 2019) Zoomed in
Looking at the daily chart we notice on Nov 21 USD/JPY rebounded from the 50-Day average, then started to develop the right shoulder of inverted head and shoulders. This suggests, if the price breaks and remains above the neckline residing at 109.32 it could rally above 112.00 handle.
On the following day, the pair rallied to the higher trading zone 108.61 – 109.75 eyeing a test of the high end of the zone. A close above 109.84 may convince more buyers to join in the market and push USDJPY towards the vicinity of 110.48 -52. In that scenario, the weekly resistance level and area should be considered.
In turn, any failure in closing above the high end would mean weakness in bullish momentum as buyers take profit and exit the market. This could reverse the pair’s direction sending it towards the low end of the zone. Further close below the low end could open the door for sellers to press towards 107.30. That said, the weekly support levels and areas marked on the chart should be monitored.
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USD/JPY Four Hour PRice CHART (Nov 4 – Nov 27, 2019)
Looking at the four-hour chart, we notice yesterday retested the neckline of double bottom pattern located at 109.07 and closed above it, highlighting a possible bullish move towards 109.84.
A break above 109.32 could lead USDJPY towards 109.75. Although, the weekly resistance level underlined on the chart should be kept in focus. On the other hand, a break below 108.75 could send the price towards 108.42. Yet, the low end of current trading zone discussed above on the daily chart should be watched closely.
See the chart to know more about the key technical levels USDJPY would encounter in a further bullish/bearish scenario.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.