USD/JPY Price Analysis: Break of 135.55 is key for further upside

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  • USD/JPY is showing a three-day uptrend, settling around the weekly high.
  • The sustained break of the monthly resistance line and the bullish signal from the MACD favor the buyers.
  • The bears should wait for the confluence of the ascending triangle for conviction.

The USD/JPY it has recovered about 65 pips from the Asian session low at 134.73, reaching a daily high of 135.36 on the European open. At time of writing, the pair is trading above 135.23, gaining 0.15% daily.

Thus, the yen pair rises for the third day in a row, while justifying the previous day’s upside break of the descending mid-July resistance line, which is now support around 134.00.

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It also keeps buyers hopeful as it is the strongest bullish sign since late June.

However, the 50 DMA and a horizontal zone comprising multiple levels marked since July 22, respectively around 135.40 and 135.50-55 look like a tough nut to crack for USD/JPY buyers.

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After that, a move north towards June’s monthly high near 137.00 is imminent.

If USD/JPY prices hold firm beyond 137.00, the yearly high noted in July around 139.40 will be in the spotlight.

On the other hand, retracement moves remain unimpressive until the resistance-turned-support line at 134.00 is breached.

Even so, the convergence of the rising trend line from two weeks ago and the 50% Fibonacci retracement level of the May-July high, close to 132.90-85 becomes crucial support to watchas its breakout will confirm the bearish ascending triangle chart pattern.

USD/JPY: Daily Chart

Trend: Expected to continue rising

Technical Levels

USD/JPY

Panorama
Last Price Today 135.28
Today’s Daily Change 0.25
Today’s Daily Change % 0.19
Today’s Daily Opening 135.03
Trends
20 Daily SMA 134.49
50 Daily SMA 135.4
100 Daily SMA 131.69
200 Daily SMA 123.57
levels
Previous Daily High 135.5
Previous Daily Minimum 133.91
Previous Maximum Weekly 135.58
Previous Weekly Minimum 131.73
Monthly Prior Maximum 139.39
Previous Monthly Minimum 132.5
Daily Fibonacci 38.2% 134.89
Daily Fibonacci 61.8% 134.52
Daily Pivot Point S1 134.12
Daily Pivot Point S2 133.22
Daily Pivot Point S3 132.53
Daily Pivot Point R1 135.72
Daily Pivot Point R2 136.4
Daily Pivot Point R3 137.31

Source: Fx Street

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