From a technical standpoint, USD/JPY found support around the 142.11 level, which triggered a break above the descending trendline on the 4-hour chart. This breakout suggests a shift in momentum, favoring the bulls in the short term. However, the upward movement is currently facing resistance near the minor supply zone at 144.20, where price has temporarily stalled as the market awaits further direction.
If bullish momentum continues, a brief pullback to retest the broken trendline is expected, a move that would also align with a nearby demand zone. This potential retracement could offer a fresh buying opportunity, with targets aimed first at clearing the 144.20 resistance. A successful breakout above this level may pave the way toward the psychological resistance at 145.00.
On the flip side, if bearish pressure resumes and the pair breaks below the 142.00 support level, the next downside target would be the 141.52 area, further decline will target 140.65 level. Breakout of this levels are not ruled out.
On the Radar for the Remainder of the Week:
• Wednesday: Richmond Manufacturing Index (6:00 PM GMT+4) will offer a snapshot of U.S. factory activity. Later, the FOMC Meeting Minutes (10:00 PM GMT+4) could reveal key insights into the Fed’s stance on inflation and interest rates.
• Thursday: A busy day kicks off with the Preliminary U.S. GDP, a crucial measure of economic performance, followed by Weekly Jobless Claims and Pending Home Sales, reflecting labor and housing market trends.
• Friday: The focus shifts to Japan with the release of Tokyo Core CPI, which may guide yen sentiment. In the U.S., attention turns to the Core PCE Price Index, the Fed’s preferred inflation gauge, and Consumer Sentiment, indicating household confidence. These datapoints has the tendency to drive prices in the coming days.
If bullish momentum continues, a brief pullback to retest the broken trendline is expected, a move that would also align with a nearby demand zone. This potential retracement could offer a fresh buying opportunity, with targets aimed first at clearing the 144.20 resistance. A successful breakout above this level may pave the way toward the psychological resistance at 145.00.
On the flip side, if bearish pressure resumes and the pair breaks below the 142.00 support level, the next downside target would be the 141.52 area, further decline will target 140.65 level. Breakout of this levels are not ruled out.
On the Radar for the Remainder of the Week:
• Wednesday: Richmond Manufacturing Index (6:00 PM GMT+4) will offer a snapshot of U.S. factory activity. Later, the FOMC Meeting Minutes (10:00 PM GMT+4) could reveal key insights into the Fed’s stance on inflation and interest rates.
• Thursday: A busy day kicks off with the Preliminary U.S. GDP, a crucial measure of economic performance, followed by Weekly Jobless Claims and Pending Home Sales, reflecting labor and housing market trends.
• Friday: The focus shifts to Japan with the release of Tokyo Core CPI, which may guide yen sentiment. In the U.S., attention turns to the Core PCE Price Index, the Fed’s preferred inflation gauge, and Consumer Sentiment, indicating household confidence. These datapoints has the tendency to drive prices in the coming days.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.