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The USD/JPY pair has successfully reached its initial upward target of 157.60, even briefly touching a high of 157.70. The technical outlook remains positive, with the price holding above the 50-day simple moving average.
Despite a brief dip, the Stochastic oscillator is showing signs of recovery, attempting to shed its momentary negativity and regain upward momentum. This suggests that the bullish trend could resume in the near term.
Therefore, the upward bias remains the most likely scenario for the day. However, caution is warranted as the pair approaches the 157.60 level again. A decisive break and consolidation above this level could significantly strengthen the bullish momentum, potentially leading to moves towards 158.00 and even 158.30.
It’s crucial to remember that the 156.60 level remains a pivotal support for the bullish scenario. A breakdown below this level could negate the upward momentum and trigger a retest of the 155.55 support level before any further attempts to rise.
Traders should remain vigilant and closely monitor price action around these key levels. The upcoming release of high-impact economic data from the U.S. economy, including unemployment benefits and the preliminary reading of quarterly GDP, could introduce significant volatility into the market.
Disclaimer: Trading in CFDs carries inherent risks. The analysis provided herein is not a recommendation to buy or sell, but rather an interpretation of the current price movement on the chart.
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