USD/JPY Poised for Bullish Continuation; 120 is Key

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USD/JPY Poised for Bullish Continuation; 120 is Key

The USD/JPY has been consolidating for a little over a week since making a high on the year at 121.84. After a correction back down to 117.43, it looks ready for bullish continuation. Let’s take a look at the charts to assess the USD/JPY’s technical conditions.

After the retreat from 121.84 to 117.43, price stabilized and broke above a falling trendline. It has since pulled back but is starting the week showing that it can hold above 117.43. As it now moves to break above 119, it is confirming last week’s bullish breakout.

Still, we a break above 120 will clear some short-term resistance factors. The 1H RSI should tag 70 while the 4H RSI should push above 60. Then, USD/JPY has the 121.80-122 area in sight. Above that, there is room to 124-124.16 before hitting the 2007-high. With the monthly RSI above 80 already, we can expect some resistance around 124.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.