FX.co ★ Geolocation | USD/JPY

USDJPY Technical Analysis: There is currently disagreement over the price movement analysis of the USD/JPY currency pair. After a large increase, the weekly chart clearly displays a bearish correction pattern. Before stabilizing at that level, the pair dropped more than 1000 pips from a high of 159.268 to a low of 148.318. The pair just tested the recent Fibonacci retracement level of 149.658, and a number of scenarios are likely as New Year's Eve draws near. For the last three weeks, the USD/JPY pair has been unable to break below this level, indicating that the uptrend may be about to resume. A move to the 152.618–153.618 zone is feasible, but a sustained move over 168.618 appears improbable. The USD/JPY pair saw resistance at 152.184 on the 1-hour chart after rising from the support level of 148.849.

After stop-loss orders were cleared, an initial increase was anticipated. A string of bearish candlesticks during the increase from the 149.817 level made it evident that the market was overbought. Seller volume is rising despite the ongoing drop, indicating a potential move to the 148.275 support level. The price is expected to retest prior highs given the long-term expectation for a bullish reversal. Whether it will increase or fall above these levels will be made clear by the price movement. It is also advised to get this pair. A further rally to the Bollinger Band midpoint at 154.758 could result from the increase, and it is important to keep a close eye on the potential for further upward momentum. The general increase may extend to the upper Bollinger Band at 159.458 if the price breaks through this level.