USD/JPY reaches near critical resistance 138 – A key level to Watch
USD/JPY Technical Analysis
The technical outlook of the daily chart of the currency pair USD/JPY shows signs of a strong bullish trend. The price is moving above the Ichimoku cloud and has reached its critical resistance level of 138. This level offered great support to the pair in November 2022 from a massive fall. Furthermore, back in August 2022, this level acted as strong resistance before USD/JPY rallied to 150. Now that the currency pair has reached near this level, traders are keeping a close eye on the market.
The technical indicator MACD histograms are appearing above the zero line with strong bars showing that the bullish trend is here to stay. Meanwhile, the Relative Strength Index (RSI) is about to touch the overbought zone, meaning the bulls are dominating the market.
Furthermore, the 20-SMA line is about to cut the 50-SMA line from below, suggesting a possible price hike ahead. All these positive indications confirm that USD/JPY will soon break above the 138 critical resistance.
If any daily candle closes above this level, it would trigger a massive bullish rally towards 140 and above levels. On the other hand, if the prices fail to break this resistance, it could fall back towards the 134 level.
Daily Technical Levels
Pivot Point: 137.07