Technical Analysis: USDJPY is ready to refresh multi-year high
USDJPY sustains upside break of a weekly resistance line, now support around 134.85, as bulls brace for the fresh multi-year high, currently around 136.70. In doing so, the yen pair could aim for the 61.8% Fibonacci Expansion (FE) of May 24 to June 16 moves, near 137.20. However, a convergence of the 78.6% FE and the upper line of the monthly bullish channel, near 138.80 by the press time, appears a tough nut to crack for the buyers. In a case where the quote remains firmer past 138.80, the odds of witnessing the 140.00 threshold on the chart can’t be ruled out.
Meanwhile, pullback moves may retest the resistance-turned-support near 134.90, a break of which could direct USDJPY prices towards the aforementioned channel’s lower line, close to 133.90. Should the pair drop below 133.90, the sellers could target the 133.00 round figure before challenging the broad support zone around 131.30-40 comprising 200-SMA and multiple levels marked since late April. It’s worth noting that the bear’s dominance past 131.30 won’t hesitate to conquer the 130.00 psychological magnet.
Overall, USDJPY is likely to witness further upside and can renew the multi-year top marked during the last week. However, RSI conditions could join the 138.80 key hurdle to challenge the advances.