USD/JPY resumes its upward trajectory on Tuesday after testing the 20-day Simple Moving Average (SMA) at 158.10 on Monday, rising towards 159.00, posting gains of over 0.14%.
USD/JPY Price Forecast: Technical Outlook
The USD/JPY remains bullish-biased, even though Monday’s reversal opened the door to testing lower prices, such as the March 5 pivot low at 156.45. A day ago, bullish momentum was fading, but as of writing, the Relative Strength Index (RSI) is aiming higher, above its neutral 50 level.
If USD/JPY ends the day above 159.00, expect a test of 159.50, followed by 160.00. Nevertheless, fears of a possible intervention by Japanese authorities could keep the pair trading sideways.
On the downside, the USD/JPY first support would be the 20-day SMA at 158.10. A breach of the latter will expose 157.50, followed by 157.00, and the March 5 cycle low at 156.45. Once those two levels are taken out, the next support is the 100-day SMA at 156.20.
USD/JPY Price Chart – Daily
USD/JPY Daily Chart
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