USD/JPY Technical analysis

Source: Dukascopy Bank SA
USD/JPY is clearly in an uptrend—it keeps moving up, as shown by the upward-slanting "lane," also called a channel, it's been in. The price is also staying above the red line, which is its average, and this is acting like a rising floor and is a positive sign. The green line at the bottom, the RSI, shows that the upward momentum is strong, but not yet in the "over-excited" or "overbought" danger zone. Right now, the price is testing a key floor, or support, around 154.40 - 154.60. This spot is important because it's where the red line and the bottom of the lane meet.



The next ceiling, or resistance, that it needs to break is at 155.150. This means there are two likely scenarios: a bullish one where the price bounces off this floor, stays in its lane, and breaks the 155.150 ceiling, or a bearish one where the price breaks below the floor and falls out of the channel. In short, the trend is up, but it's at an important test, and the main question is whether this "floor" at 154.40 will hold.

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