
September 7, 2022 12:01 AM ET
By: AnalysisWatch
USD/JPY is trading around 143.50 after hitting its highest level since 1998 during Wednesday's Asian session. In doing so, the yen pair is having fun breaking the monthly bullish channel to the upside while ignoring overbought conditions on the RSI.
That said, the higher-lower formation keeps USD/JPY buyers hoping to refresh the yearly high.
In doing so, an upward-sloping resistance line since late April near 144.60 is getting all the attention.
If USD/JPY buyers continue to rush north of 144.60, the highs marked in June and August of 1998, near 146.80 and 147.70, respectively, will be in their sights.
At the same time, pullbacks must be validated by the resistance line turned support of the indicated channel, around 142.60 at press time.
After that, the southward trajectory could target the 140.00 threshold. However, USD/JPY bears will need a clear downside break of the 139.40 support confluence, including the lower line of the indicated channel and the July high, to regain control.
Overall, USD/JPY is poised to retest the multi-year high, but there is limited room for improvement.
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