USD/JPY retest the target 31/10/2023

The USD/JPY pair has successfully executed the retesting scenario we anticipated in our previous analysis, reaching the initial retest target of 149.20. It came remarkably close to the second target of 148.65, touching a low of 148.80.

From a technical perspective today, the pair exhibited clear positive momentum, experiencing a notable upward rebound after hitting the crucial support level near 149.20. The return of the simple moving averages from below supported the price movement. Clear signals from the 14-day momentum indicator further confirmed this positive trend.

In light of these factors, we might witness a sustained upward trajectory with an initial target set at 150.45, followed by 150.70 as the subsequent stop. If the positive momentum continues, gains could extend further to reach 151.00.

However, if the pair fails to maintain stability above 148.90, a corrective decline may ensue, with the initial target at 148.40. Monitoring the pair’s behavior around these critical levels is essential for gauging its future movements.

Please take note that today, the market is awaiting significant economic data from both the US, including the Consumer Confidence Index, and Canada, particularly the monthly gross domestic product. There might be substantial price fluctuations when these news releases occur.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 149.20	R1: 150.45
S2: 148.40	R2: 150.90
S3: 147.80	R3: 151.75