- USD/JPY takes a breather in a tight 40 pip range as bulls prepare for a 116.00 attack
- Market risk appetite weighed on safe haven pairs, although high US Treasury yields dragged USD/JPY down.
- USD/JPY Technical Outlook: Triple Bottom Holds and Targets 117.00.
The USD/JPY is sloping to the upside on Wednesday but facing stiff resistance at the neckline of the triple bottom. At press time, USD/JPY is trading at 115.81, close to the aforementioned trend line, during the North American session.
The mood in financial markets remains positive as US stock indices post gains. Factors such as Ukraine’s readiness to resume talks with Russia, aimed at ending the war amid compromises between the two countries, and Ukraine’s withdrawal from joining NATO calmed investors.
USD/JPY overnight witnessed range-bound action within the 115.60-115.95 area, which continued throughout the European session. In the North American session, the pair fell to 115.50s, resuming higher, as the Wall Street close looms.
USD/JPY Price Forecast: Technical Outlook
USD/JPY is still biased to the upside, although it is worth noting that the daily moving averages (DMA), which were previously well below spot, are getting closer to true price.
Tuesday’s price action stalled just below the neckline of the triple bottom around 115.80. However, on Wednesdays, the pair snakes above/below the latter, without enough strength to break out to the upside.
The first resistance of the USD/JPY would be 115.80. Once cleared, the next resistance would be 116.00, followed by the yearly high at 116.35 and the triple top target at 117.00.
Additional technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
