USD/JPY Daily Chart AnalysisThe USD/JPY pair is currently moving within an upward channel, demonstrating a steady uptrend since the recent lows around 139.56. The pair has been respecting key Fibonacci retracement levels, which could act as areas of support and resistance.
Key Levels to Watch:
0.236 Fibonacci Retracement (156.67): This level has served as a resistance zone, and a breakout above could pave the way for a test of the recent highs around 157.84.
Support Zones: Immediate support is seen at the 0.382 retracement (153.40), with additional support at the 0.618 level (148.12). A break below the channel could see a retest of these supports.
Indicators & Trends:
Moving Averages: The 20-day and 50-day moving averages are acting as dynamic support levels, supporting the current bullish trend.
Volume: There was a recent increase in volume as the pair rallied, suggesting strong buying interest. However, watch for any drop in volume, as it could signal weakening momentum.
RSI (Relative Strength Index): The RSI is approaching overbought territory, so caution is advised as the pair nears resistance zones.
Outlook:
The pair may experience consolidation between the 153.40 support and 156.67 resistance levels in the short term. A breakout above 156.67 could lead to a potential test of 157.84 and beyond. Conversely, a breakdown below the support trendline may shift momentum towards the downside, targeting lower Fibonacci levels and potentially the key support near 143.88.
Trading Plan:
Bullish Bias: Wait for a confirmed breakout above 156.67, aiming for the 157.84 level.
Bearish Bias : A confirmed break below the channel could signal a trend reversal, with initial targets near 150.75 and 148.12.
Always consider using appropriate risk management.
