- USD/JPY buyers need a daily close above 115.60 to cement a charge towards the yearly high at 116.35.
- USD/JPY Technical Outlook: It is skewed to the upside, confirmed by DMA and RSI in bullish territory.
On Tuesday, the USD/JPY bounces away from a two-month downtrend line, previous resistance turned support around 115.00-15 area, while also rallying above 24 Nov 2021 high at 115.51, a bid zone . At the time of writing, the USD/JPY is trading at 115.64.
USD/JPY Price Forecast: Technical Outlook
USD/JPY is biased to the upside as shown by the daily moving averages (DMAs) located well below the price. Furthermore, a daily close above the Jan 28 daily high at 115.68 would further cement the bullish bias as USD/JPY buyers attempt to challenge the 116.35 daily low for the second time this year. Further confirmation of the Relative Strength Index (RSI) at 59 pointing up has enough room before reaching overbought conditions.
That said, the first resistance for USD/JPY would be 116.00. A break of the latter would expose the yearly high at 116.35, followed by a challenge from a 24-month downtrend line around 117.00. A clear break of that high would pave the way for the January 2017 high at 118.61.
On the other hand, the first support for USD/JPY would be the daily low of February 14 at 115.00. A sustained break would expose the 50 DMA at 114.67, followed by the Feb 2 low at 114.14 and then the 200 DMA at 114.07.
Additional technical levels
Source: Fx Street
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