Analysis of USD/JPY:
The USD/JPY pair is currently experiencing a strong bullish momentum and is approaching the high level within the 144.50 range. This indicates a significant upward movement in the price. Furthermore, the price is currently trading above both the 200-day and 50-day Moving Averages, which reinforces the notion of a robust bullish long-term momentum.
Scenario 1:
In this scenario, there is a possibility for the price to continue its upward movement and test the 144.703 level, potentially even reaching the 144.753 level. If the bullishness persists, the price may advance further and test the range between 144.821 and 144.895, which corresponds to the top of the support level. It is worth noting that the highest point recorded so far is at the June highs of 145.071
Scenario 2:
Alternatively, there is a chance for the price to decline and test the 144.430 level. A successful test at this level could potentially lead to further downside movement towards the 144.280 level. If the downward momentum continues, subsequent support levels to watch for include 144.181 and 144.121. It is important to highlight the key levels within the range of 144.181 to 144.753, as this range aligns with the 38.2% Fibonacci retracement level.
Overall, the current market sentiment for USD/JPY is displaying upward momentum, with the price being near the overbought region according to the Relative Strength Index (RSI). Traders and investors should closely monitor the price’s behavior at the aforementioned levels and consider factors such as support and resistance, Fibonacci retracement levels, and the RSI to make informed decisions about their trading strategies.
