USDJPY @ 134.227 – Support/Resistance analysis: Price Analysis: Soars and reclaims 134.00, eyeing 135.00

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USDJPY @ 134.227 – Support/Resistance analysis: Price Analysis: Soars and reclaims 134.00, eyeing 135.00

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• USD/JPY bounces off weekly lows around 132.50, underpinned by high US bond yields.
• The major faces solid resistance around 134.50-65; once cleared, a jump to 135.00 is on the cards.
• In the near term, a USD/JPY pullback towards the 133.50-60 area is on the cards before resuming upwards.

The pair currently trades last at 134.227.

The previous day high was 133.6 while the previous day low was 132.56. The daily 38.2% Fib levels comes at 132.95, expected to provide support. Similarly, the daily 61.8% fib level is at 133.2, expected to provide support.

The USD/JPY jumps from around weekly lows to a crowded resistance area, with the 20-day EMA at 134.62, alongside a downslope resistance trendline, drawn from July tops (also the YTD highs), which passes near the 20-DMA. At the time of writing, the USD/JPY is trading at 134.27.

From a daily chart perspective, the major bias is neutral-upward biased, but a wall of resistance is emerging ahead of the 135.00 figure. However, the RSI crossing above its 7-day RSI SMA, also about to cross over the 50-midline, illustrates buying pressure is mounting on the pair. That, alongside higher US Treasury bond yields, can underpin the USD/JPY towards higher prices.

Therefore, the USD/JPY’s first resistance would be the 20-day EMA. Once broken, its next resistance would be the 135.00 figure, followed by a test of the August MTD high at 135.58.

Zooming into the one-hour scale, the USD/JPY is upward-biased, but in the last hours, the pair retraced due to RSI’s entering overbought conditions. Hence, the major might print a leg down before resuming the higher-time frame uptrend towards 135.00 and beyond.

Therefore, the USD/JPY first support would be the 50% Fibonacci retracement at 133.81. Break below will expose the confluence of the 50-day EMA and the 61.8% Fibonacci retracement at 133.50-60. After that, the USD/JPY might resume upwards, towards the August 9 daily high at 135.30.

USD/JPY Hourly chart

Technical Levels: Supports and Resistances

USDJPY currently trading at 134.27 at the time of writing. Pair opened at 133.32 and is trading with a change of 0.74 % .

The pair is trading below its 20 Daily moving average @ 134.84, below its 50 Daily moving average @ 135.35 , above its 100 Daily moving average @ 131.45 and above its 200 Daily moving average @ 123.36

The previous day high was 133.6 while the previous day low was 132.56. The daily 38.2% Fib levels comes at 132.95, expected to provide support. Similarly, the daily 61.8% fib level is at 133.2, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 132.71, 132.11, 131.67
• Pivot resistance is noted at 133.76, 134.2, 134.8

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