USD/JPY: A break above 143.20 could sustain gains

24-hour view: The strong rise in the dollar pushed USD/JPY to a high of 142.67, which is surprising. While severely overbought, gains could extend to 143.20 before the risk of a pullback increases. On the downside, a break below 141.30 (with minor support at 141.80) would suggest that the currently strong upward pressure has eased.

Outlook for the next 1-3 weeks: Yesterday (July 31, market price 140.80) we emphasized that “the outlook for USD/JPY is uncertain, and it is expected to fluctuate between 138.50-141.95.” We did not expect the exchange rate to surge to a high of 142.67. Not surprisingly, upside momentum has strengthened. Although the short-term conditions are severely overbought, the exchange rate may continue to rise. However, it must break and sustain above 143.20 for a sustained rise. As long as it stays above 140.50 in the next few days, the upside risk remains. Looking ahead, the next significant resistance above 143.20 is at 145.00.

USD
foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright fxcurrencyconverter.com