USD/JPY has been rising for the past two weeks amid a strong US Dollar. At the time of writing, the USD/JPY pair is currently trading around 144.05. The intraday support levels are at 141.00 and 139.21. Near-term resistance areas are at 143.83 and 144.87. The uptrend is presently bullish; however, most of the momentum indicators present an overbought condition that might cause a few pullbacks in the coming sessions.
USDJPY Technical Outlook
The Bollinger bands, Stochastic and Relative Strength Index (RSI) indicate an overbought market. The ATRI shows high market volatility while the MACD is above the zero line. The 20, 50, and 100 period moving averages are below the current price.
USDJPY Short-Term Support and Resistance Levels
Support and resistance levels provide insight to the market’s movement. A support area that remains intact for an extended period is considered a strong support area compared to one that is only tested a few times. Likewise, a resistance area that remains intact after several attempts to breach is considered a more important resistance area than one that is newly established or tested just a few times.
Related Article: AUD/USD Outlook and Trade Signal (short-term)
USD/JPY Trading Range
Daily Trading Range: 142.66 – 144.39
Weekly Trading Range: 140.12 – 144.39
Monthly Trading Range: 138.83 – 144.39
Yearly Trading Range: 113.47 – 144.39
USDJPY Trade Signal 07-SEP-2022
Following FXDatapanel proprietary algorithm and its strategies, along with the overbought indications from several technical indicators, the USDJPY is likely to make smaller pullbacks, making the USD/JPY pair ideal for selling entries using the following levels.
Forex Trade Signal
Trade Direction: Sell
Trade Timeframe: Daily
Entry: 143.07
Stop-loss: 1.4438
Take Profit: 140.45
Related Article: EUR/JPY Daily Outlook and Short-Term Trading Idea
USD/JPY Important Technical Levels To Watch
USD/JPY has already breached the first hurdle (143.83). Now a breach above 144.87 is needed to ensure a further rise. On the downside, a closing below 143.00 is required for the bears to start building a downward momentum.
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