Review
As of Friday’s close at around 129.56 yen, the currency pair has posted a gain of around 0.9%. Today, the price moved further up with +0.8%. In the downward trend since October 2022, the price on Jan. 16. marked a low of 127.22 yen. Since then, the share price has risen by 2.9% at times.
Analysis
The medium-term downtrend, which the USD/JPY last broke on 12/01. confirmed a line at currently 120.30 yen, which was crossed today. However, since it is also on 06.01. there was already a similar false breakout above the trend line, one should wait for a daily close above the downtrend line for a bullish stance on the price.
Moreover, the resistance level in the range of 129.42 to 130.57 yen would then also be broken and could serve as horizontal support in the future.
Outlook
Thus, if the price continues to be bullish, we could see a continuation of the price rally to above 132 yen. Otherwise, the price could fall below the downtrend line again and thus reconfirm the downtrend. Further downward movements towards 127.00 yen could then follow.
