USD/JPY attempts advance from support line

<p>USD/JPY (daily chart shown below) is once again attempting to rise from a key support trend line that extends back to the 93.77 low in […]</p>

USD/JPY (daily chart shown below) is once again attempting to rise from a key support trend line that extends back to the 93.77 low in mid-2013.

Friday’s climb that occurred early in the US session can largely be attributed to the better-than-expected jobs report from the US Labor Department.

USD/JPY has essentially been in a general consolidation since the beginning of the year, although it’s been well-supported by both the noted trend line as well as the key 200-day moving average.

Also providing support has been the 100.75 level, where the currency pair rebounded in early February and has not breached to the downside since.
USDJPY technical analysis chart


Having followed a steadily rising trend line for almost a year, despite the recent consolidation, USD/JPY has struggled to continue the general bullish trend that has been in place since 2012.

The currency pair continues to hold above its 200-day moving average and fluctuate around its 50-day moving average.

If price can maintain its support base, it should once again look to target higher highs.

Upside resistance targets currently reside around 103.75 and then the five-year high of 105.43 that was hit at the very beginning of this year.

A move above that high would confirm an uptrend continuation, with a longer-term upside target around 108.00.


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.