- USD/JPY inched higher towards 132.40 on Monday, buoyed by risk appetite.
- The daily chart shows the pair with a neutral bullish trend.
- In the short term, the USD/JPY on the 4-hour chart shows the pair trading between 131.80-133.00.
He USD/JPY up as New York session progresses, rose 0.77%, hitting a fresh six-week high at 132.90. However, the pair failed to hold its gains and was rejected towards the 132.40 zone. At the time of writing, USD/JPY is trading at 132.44.
From a daily chart perspective, USD/JPY rallied and broke through last week’s high around 132.90 to pull back to 132.50. The USD/JPY pullback was driven by the 50-day EMA at 132.66; although it broke, the USD/JPY pair declines below the latter. Although the pair is trading below the daily high, the short-term trend for USD/JPY is bullish.
On the 4-hour chart, after USD/JPY consolidated over the past week in the 130.30-131.80 zone, it broke the top of the range, but solid resistance around 133.00 limited the USD/JPY recovery. JPY. However, USD/JPY could start trading in a higher range, within the 131.80-133.00 zone, ahead of US inflation data due to be released around 1pm on Tuesday: 30 GMT.
If the report shows that inflation continues to decline, USD/JPY could target the 200 EMA at 131.49, ahead of the 131.00 figure. Once these demand zones are broken, the 100 EMA would be exposed at 130.84.
On the contrary, higher than expected inflation would pave the way for further increases. Therefore, the first resistance for USD/JPY would be 133.00. Break above, and the 134.00 figure is next, followed by the Jan 6 high at 134.77.
USD/JPY 4-hour chart
USD/JPY Key Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
