#USDJPY @ 138.842 -imp levels: reached a fresh 7-week high at the 139.00 figure.

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• USD/JPY reached a fresh 7-week high at the 139.00 figure.
• Once the 139.00 figure is broken, the USD/JPY YTD high is next at 139.38, as the pair aims towards 140.00.

The pair currently trades last at 138.842.

The previous day high was 137.76 while the previous day low was 136.19. The daily 38.2% Fib levels comes at 137.16, expected to provide support. Similarly, the daily 61.8% fib level is at 136.79, expected to provide support.

The USD/JPY extends its rally, underpinned by higher US Treasury bond yields, on Monday, amidst a downbeat sentiment propelled by last Friday’s Jerome Powell speech. He reiterated the Fed’s commitment to tackle inflation to the 2% goal, despite causing slower economic growth, alongside “pain to households and businesses.” At the time of writing, the USD/JPY is trading at 138.73, above its opening price.

Since the beginning of August, the USD/JPY resumed its upward bias after diving towards fresh two-month lows at 130.39. Worth noting that on its way toward current exchange rates, the USD/JPY cleared the 20 and 50-day-EMAs, opening the door to further gains.

The bias is further supported by the Relative Strength Index (RSI), which downtick under the 60 reading, made a U-turn, and broke above its 7-day RSI’s SMA, showing buyers gathering momentum.

In the short term, the USD/JPY is neutral-upward biased, but as the RSI entered overbought conditions, the USD/JPY retraced from daily highs, hitting 139.00. However, the USD/JPY’s first resistance would be the 139.00 figure. Once cleared, the next supply zone will be the YTD high at 139.38, followed by the psychological 140.00 mark.

On the other hand, the USD/JPY first support would be the R2 daily pivot at 138,41. Break below will expose subsequent pivot point levels, like the R1 at 137.95, followed by the 20-EMA at 137.39, before tumbling to the daily pivot at 137.07.

Technical Levels: Supports and Resistances

USDJPY currently trading at 138.76 at the time of writing. Pair opened at 137.66 and is trading with a change of 0.8 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 134.85, 50 SMA 135.77, 100 SMA @ 132.65 and 200 SMA @ 124.36.

The previous day high was 137.76 while the previous day low was 136.19. The daily 38.2% Fib levels comes at 137.16, expected to provide support. Similarly, the daily 61.8% fib level is at 136.79, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 136.64, 135.63, 135.06
• Pivot resistance is noted at 138.22, 138.78, 139.79

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