USDJPY Approaches The 160.40 Resistance Level

Market Analysis – April 29

The USDJPY currency pair has recently undergone a notable bullish breakout from a rising wedge pattern observed on the daily chart. Presently, it is displaying significant momentum as it advances towards challenging the key resistance level situated at 160.40.

Key Levels for USDJPY

Demand Levels: 151.90, 146.50, 151.90
Supply Levels: 160.40, 165.00, 170.00

Long-Term Trend for USDJPY: Bullish

The bullish trajectory of USDJPY witnessed a temporary retracement during March, where the price descended to test a pivotal bullish order block positioned at 146.50. Subsequently, the Parabolic SAR (Stop and Reverse) indicator found its position beneath the daily candlesticks, guiding the price action upwards. Furthermore, the MACD histogram transitioned into green bars, signalling a strengthening uptrend.

Breaking through the resistance barrier at 151.90, the price swiftly transcended the confines of the rising wedge pattern delineated on the daily chart. Following this breakout, the rising wedge’s resilience was tested with a Pinocchio bar, revealing considerable buying pressure in the market.

Short-Term Trend for USDJPY: Bearish

The last daily candle exhibited a notable range between its lowest and highest points, registering a difference of 348 pips. This demonstrates a pronounced price inclination to traverse swiftly towards the subsequent trading zone. Currently, indicators continue to underscore a prevailing bullish bias to support bullish forex signals. The price trajectory converges towards the critical resistance level of 160.40.

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