Japanese Yen (JPY) Technical Outlook: USD/JPY Trading Near 1998 High

USD/JPY TECHNICAL OUTLOOK:NEUTRAL

  • USD/JPY pullback may continue in the near-term
  • 1998 high over 14700 looks poised to get tested at some point

JAPANESE YEN (JPY) TECHNICAL OUTLOOK: USD/JPY TRADING NEAR 1998 HIGH

The USD/JPY strength we saw last week carried the price up towards the 1998 high at 14767 before stalling out right around 14500. The stall and revers has a minor reversal week carved out, but nothing too bearish-looking.

It could lead to a pullback in the near-term, but another push into long-term resistance is anticipated after some weakness. There is slope support being tested for the first time as support, with the line running up beneath the Friday low arriving from a March pivot that crosses near the May low.

This slope has a couple of other instances that are below that have been influential. The big price level to watch, though, that has even more attention is the July high at 13938. A test and hold of this level would increase a bullish bias.

Horizontal price action from here that digests the recent run would also be considered with short-term levels getting carved out via a range. This could also set up for a bullish bias towards the 1998 high. In the event we get to the 1998 high watch price action closely as it may induce a broader pullback upon a failure.

For now, in wait-and-see mode until the chart cleans itself up a bit and provides some solid directional cues.

USD/JPY PRICE DAILY CHART

USD/JPY Daily Chart

USD/JPY Chart by TradingView

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—Written by Paul Robinson, Market Analyst