USD/JPY may be on the start of an uptrend, judging from the forex signals in its 1-hour time frame. The pair just made an upside break from a short-term consolidation pattern and the Ichimoku Kinko Hyo technical forex signals are hinting at a potential continuation of the rally.
The green line recently crossed above the price, which is an early buy signal seen last week. In addition, USD/JPY is moving above the blue line, which also means a rising trend. The red line has just started to move upwards, also indicating that the market is trending instead of ranging.
Price is also above the orange lines, which could serve as support levels for any potential retracements. These forex signals hint that the pair might bounce off the first support zone at 102.18 or at the second support zone at 102.10. If you are long on this pair, then you can set your stop losses safely below these levels.
USD/JPY Technical Forex Signals
Do take note though that the pair is on its way to test a resistance level around the previous peak, which is located at the 103.75 level. This could act as a ceiling for the rallies in the next few days, depending on how US and Japanese economic reports turn out.
Bear in mind that the US is set to print its non-farm payrolls figure for March later on this week and that Japan is scheduled to implement its sales tax hike tomorrow. Strong data from the US combined with weak economic forecasts for Japan could lead to more forex signals for a USD/JPY rally. On the other hand, strong optimism for the Japanese economy and weak US reports might lead to a selloff back to the previous support around the 101.50 minor psychological support. Take note of the potential area of interest around the nearby 102.50 level as well.
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