Thursday, September 19, 2024

USD/JPY Breaks Out of Price Channel: What’s Next?

 

The USD/JPY pair has recently broken above the falling price channel on the 4-hour chart, indicating that the downward trend from 147.20 might have concluded at 139.57. This shift suggests a potential change in market sentiment, with traders now eyeing key resistance and support levels.

Key Levels to Watch:

  1. Resistance at 144.05
    The pair is currently testing the 144.05 resistance level. If USD/JPY can break through this point, it may open the door to further gains. The next major resistance to watch is around 146.20, with an additional target at 147.20.

  2. Support at 142.40
    On the downside, 142.40 serves as the initial support. A break below this level could lead to a retracement, with the price potentially falling to 141.60 and further down to the 140.40 area.

Conclusion:

USD/JPY is at a pivotal moment, with a breakout above 144.05 potentially leading to further upward momentum. However, a failure to sustain these gains could see the pair revisiting lower support levels. Keep an eye on these critical zones for potential trading opportunities.

by ForexCycle

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