The following is a rewritten and expanded version of the article originally reported by Adam Button on ForexLive via TradingView, titled “USDJPY stretches above 200-hour MA, tests 100-hour MA.” Full credit goes to the original author.
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# USD/JPY Technical Analysis: Price Surges Above Key Moving Averages, Eyes Further Upside
The USD/JPY currency pair has shown notable bullish momentum during recent trading sessions, indicating a potential shift in short-term outlook. In a significant technical development, the pair climbed above both its 200-hour moving average and moved toward testing its 100-hour moving average. These movements are key signaling points for market participants, as they offer insights into potential future price directions, momentum strength, and trader positioning.
This article will dive deeper into the recent movements in USD/JPY, analyze the technical levels to watch, and consider what traders should keep in mind moving forward.
## Recent Price Movements and Momentum Shift
– On Friday, the USD/JPY pair displayed surprising strength despite broader market volatility.
– After hovering near a support threshold, the pair began a steady climb that resulted in a bullish breakout above the 200-hour moving average.
– This bullish shift affirms market confidence in the safe-haven U.S. dollar, possibly due to strengthening economic signals or shifting interest rate expectations.
The key highlight of the move was the upward break of the 200-hour moving average, currently positioned at approximately 144.92. This zone had previously acted as short-term resistance, capping upward momentum earlier in the week. Traders were closely watching this level for signs of whether the recent downward correction had run its course.
## Break Above 200-Hour Moving Average
– The 200-hour moving average is often closely watched by technical analysts as a barometer of medium-term trend health.
– A break above this level typically indicates a growing bullish sentiment and a reversal in short-term direction.
– Bulls stepped in once the USD/JPY established support above the 144.90–145.00 confluence zone.
– Once momentum increased, a surge of buying pressure lifted the pair toward the next key resistance markers.
The price movement indicated not just a simple breach but strong conviction among buyers, shown by the way price continued to test and flirt with subsequently higher resistance levels.
## Test of 100-Hour Moving Average
As the pair broke beyond the 200-hour MA, it moved toward testing the 100-hour moving average, located near 145.31.
– The 100-hour MA represents a shorter-term but equally important dynamic resistance level.
– After the initial break of 144.92, USD/JPY tested 145.31, suggesting the bullish momentum may still have room to run.
– A confirmed break above 145.31 could open the doors for a move toward the 145.90–146.20 resistance zone.
That 145.31 level has acted as a pivot point during multiple past sessions, which adds further significance to this test. Traders will watch closely to determine whether the price merely tests and fails or successfully sustains gains above this mark.
## Contextualizing the Move: Confluences and Support Levels
While the moving averages offer near-term technical guidance, other support and resistance zones provide important confluence factors.
– Immediate support lies around the 145.00 psychological level and the 200-hour MA (144.92).
– Further downside support is expected around 144.30 and then at 143.80, both previously tested levels within the last 72 hours.
– Resistance comes in near 145.80–146.00, an area that has previously capped upward momentum.
These levels are heavily influenced not just by technical indicators but also by broader macroeconomic themes including Treasury yields, risk sentiment, and BOJ monetary policy.
## Broader Technical Outlook
As momentum begins to shift favorably for buyers, the broader technical outlook for USD/JPY may now lean bullish, provided the price holds key
Explore this further here: USD/JPY trading.