USD/JPY Price Forecast: Pulls back to major trendline, uptrend still intact

Last updated: 08/11/2024 10:50 PM

Mithun Seal

1 Min Read

USD/JPY declines to a major trendline and finds support.
It remains in an uptrend that could resume and push higher.

USD/JPY has pulled back to support from a major trendline for the long-term uptrend at about 152.55. Despite the correction, the pair is in an uptrend on a short and medium-term basis and given the technical analysis dictum that “the trend is your friend” the odds still favor a recovery and eventual continuation higher.

USD/JPY 4-hour Chart

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A break above the 154.71 November 7 high would renew the uptrend and probably lead to a continuation up to resistance at 155.24, the July 30 high. A break above that would provide a stronger bullish signal and might lead to a target at 157.86 (July 19 high).

Alternatively, a break below the trendline and then also below 151.29 might indicate a bearish reversal of the trend over the short-term. Such a move could follow-through lower to a target at 150.15 where support from the 100-day Simple Moving Average (SMA) (not shown) kicks in.