USD/JPY Entrenched Within Bullish Uptrend

USD/JPY is currently biased toward the upside.

USD/JPY (US dollar – Japanese yen) continued its upward trajectory with remarkable continuity in the third quarter, driven by the US dollar’s incredible momentum in the currency markets. Against this background, the currency pair is firmly entrenched within the medium-term ascending channel, moving perfectly between its lower and upper bounds, as shown in the weekly chart below.

In late September, USD/JPY rose above the 148.00 level as bulls set their sights on the upper limit of the aforementioned channel at 150.00. Considering the technical importance and overbought condition of the market, buyers may have difficulty overcoming this barrier. However, if a breakout develops, the pair could move towards its 2022 peak at 151.95. If it continues to strengthen, attention will shift to 160.60, which is in line with the high seen in April 1990.

On the other hand, if the sellers return earlier than expected and initiate a bearish reversal, the first support to watch would be located near the 144.50 threshold. This zone could be a potential foothold during price declines, but a breakout of it could amplify downward pressure and set the stage for a move towards the dynamic channel support at 142.00 at the time of writing. There is a gender. If this floor weakens, USD/JPY could head toward the key level of 137.50, just above the 200-day simple moving average.

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USD/JPY weekly chart

Source: TradingView, created by Diego Colman

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