The price of USDJPY could be finding support at a key level, will the price continue higher?
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The price of USDJPY has come under pressure recently, however the price has reached key support and buyers seem to have stepped in. This could lead to the price of USDJPY trading back towards the key resistance levels. On a weekly time frame the price could be forming an inverse head and shoulders pattern which could see the price move much higher.
If the price does close above the 132.75 support on the daily time frame, we could look for the price to trade back to the previous highs and resistance of 134.50. A break above the 134.50 highs would lead to the price heading back to the daily 200 moving average and resistance of 137.75.
The price moving higher and reaching these levels will depend on the Federal Reserve rate decision next week. If the Fed holds rates or moves by the slower pace of 25 basis points, the market could move higher. A move to raise rates at a faster pace could cause further banking concerns which could drive prices back lower.
The price on the chart has traded through multiple technical levels and some observations included:
- Price is finding support at 132.75.
- If price holds above this level we could see a move to 134.50.
- A break above 134.50 would lead to a move towards 137.75.
Have you watched our EURJPY analysis? You can see it here.
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