FX.co ★ khadiot | USD/JPY

Forex Trading with USD/ JPY We are currently discussing the behaviour of the USD/JPY currency pair and its present price evaluation. The USDJPY has been on an upward trend, steadily increasing daily, making it difficult to find entry opportunities. The market is highly volatile, and sudden reversals can catch traders off guard. However, we can set a target near 156.35 by utilising margin techniques, reflecting an extended upward trend beyond 155.13-55. Once the pair reaches this level, a margin correction is likely. The market is currently exhibiting extreme overbought conditions, sustaining bullish momentum above the daily pivot level of 154.79. If the bullish trend weakens and falls below 154.62, it could cancel any further gains, albeit intraday. However, if the pullback margin exceeds intraday trading bounds, it's deemed irrelevant for the current analysis.

The latest news is that the USD/JPY pair has surged to a 34-year high, nearing the 155.00 resistance level. That has prompted warnings from Japanese Finance Minister Suzuki regarding potential intervention to bolster the yen. Additionally, the US manufacturing PMI declined to 49.9 in April from March's 51.9, with the service sector PMI dropping to 50.9 from 51.7. On the other hand, a Japanese Ministry of Finance survey suggests that approximately 70% of Japanese companies plan pay increases in fiscal year 2024. As such, purchasing assets from levels around 154.00 and 153.33 is recommended, with a potential growth up to 155.53. If the resistance at 154.98 triggers further declines, it could offer some selling opportunities. False breakdowns of 155.05 could signal continued declines, particularly if rebounding from 154.95. Breaking below 154.95 would indicate a bearish signal, reinforced by a false breakout. The resistance at 154.80 may also extend declines, potentially dropping below, signalling a sustained downturn.