The following is a rewritten and expanded version of the article originally published on FXDailyReport.com by Kelvin Ching. The content has been restructured and elaborated for clarity and deeper analysis while maintaining the original credit. You can find the original article at: https://fxdailyreport.com/usd-jpy-rallies-above-100-hour-ma-to-trade-at-about-156-84/
USD/JPY Technical Analysis: Price Climbs Past 100-Hour Moving Average, Trades Near 156.84
The USD/JPY currency pair posted a strong rally, pushing above the 100-hour moving average on recent charts. This upside movement took the currency pair to around 156.84, signaling bullish momentum driven by key technical developments and possibly underpinned by fundamental macroeconomic factors. As market participants assess potential central bank policy paths and monitor changes in U.S. and Japanese economic indicators, the dollar-yen pair becomes a focal point amid currency volatility in global markets.
Here’s an in-depth look at the technical dynamics, market context, and what traders may want to consider when analyzing the USD/JPY chart this week.
Price Rallies Above Key Moving Average
– The USD/JPY has broken above the 100-hour moving average (MA), an important short-term technical level watched closely by traders.
– The 100-hour MA acted as prior resistance, but the recent upward move saw price surge above this level.
– Breaking above the 100-hour MA suggests bullish consolidation and could mean the currency pair is set for further gains.
– At the time of reporting, USD/JPY was trading near 156.84, well-supported above the 100-hour MA.
Technical Indicators Suggest Bullish Momentum
In addition to the rise above the 100-hour moving average, other key indicators support the near-term bullish outlook for USD/JPY:
– Price action is exhibiting higher lows, consistent with an uptrend.
– RSI (Relative Strength Index) on hourly and daily charts remains below overbought territory, indicating there could be additional room to the upside.
– Momentum indicators are beginning to tilt higher again after a brief consolidation during the last trading sessions.
Analysis of Chart Structure
From a technical chart perspective, the structure of USD/JPY suggests that buying pressure remains in place:
– A short-term ascending trendline continues to hold, guiding price upwards since the last significant pullback.
– Initial resistance near 156.00 was breached, turning into a potential short-term support level.
– No clear topping pattern has emerged on the hourly chart, adding strength to the probability of an extension toward recent highs or even new ones.
Key Levels to Watch This Week
As traders monitor the price action in USD/JPY, several important chart levels and zones merit close attention:
Support Levels:
– 156.00: Now acting as initial support after converting from former resistance.
– 155.20: Near-term support zone based on previous consolidation.
– 154.70: A more significant support tied to historical price bounces and the lower end of recent ranges.
Resistance Levels:
– 157.00: Minor psychological resistance.
– 157.70 – 158.00: Range of potential supply; if broken, it could lead to new 2024 highs.
– 160.00: A long-term target discussed in various analyst projections, contingent on continued U.S. dollar strength and no unexpected intervention from the Bank of Japan.
Fundamental Factors Supporting U.S. Dollar
Beyond technicals, there is macroeconomic context playing a significant role in driving the USD/JPY higher. The strength of the U.S. dollar is largely being sustained through a combination of these supporting elements:
– U.S. economic data has remained mostly resilient, reinforcing expectations that the Federal Reserve will keep interest rates elevated for a longer period.
– Hawkish Federal Reserve commentary continues to provide tailwinds to the greenback.
– Weekly jobless claims, retail sales, and inflation data have yet to show
Explore this further here: USD/JPY trading.