USD/JPY Technical Analysis
The outlook of the H4 chart of the USD/JPY currency pair shows that it has been continuously rising for about 32 hours. After breaking above the 50-SMA, the pair received a massive push that drove its prices to levels last seen 7-weeks ago. First, US GDP triggered the bullish trend with a stronger dollar, and then it accelerated after the Bank of Japan gave hints of further easing of monetary policy. The MACD histograms have just started appearing above the zero line, suggesting a renewed bullish trend. Furthermore, the RSI indicator has also entered the overbought zone with 80 values, giving strong positive signals.
USD/JPY prices are currently moving at 23.6% Fibonacci Retracement at 135.939 (calculated from the lowest level of 24th March, 129.67, to the highest level of 137.4 on 8th March). The upper band of the ascending channel acts as initial resistance for the USD/JPY prices. Any break above this level could push the prices towards the 137 level and above. On the other hand, the initial support lies at the 135 level (23.6% Fibonacci retracement level). Any break below this level could drag the prices further to the downside towards 135.3 and below at 38.2% Fibonacci retracement level calculated from 8th March to 24th March.