USD/JPY Sustains 2024's Bullish Setup
XM Group | Jan 31, 2024 05:46AM ET
- USDJPY consolidates its 2024 upleg between key boundaries
- Momentum indicators point lower, but trend signals remain positive
- FOMC policy announcement due at 19:00 GMT
USD/JPY has been facing difficulties in surpassing the 148.30 regions for almost two weeks, but the 147.45 region, which coincides with the 61.8% Fibonacci retracement of the November-December downleg, kept bearish forces in control, sustaining January's almost 5% rally.
h5A close above the nearby 148.30 resistance is required for an acceleration towards the 149.50-150.00 territory. If the latter proves easy to pierce through, the door will open for the 13-month high of 151.89 registered in November and the 2022 top of 151.93. Additional gains from there could face some congestion near the 153.35-153.60 barrier taken from 1990 and 1987.
On the downside, a slide below 147.00 and the 20-day SMA could immediately pause around the 50% Fibonacci level of 146.00. Breaking lower and beneath the 50-day SMA, the bears could head for the 200-day SMA currently converging towards the 38.2% Fibonacci mark of 144.70. If the 144.00 bar fails to stop the decline too, the next stop could be around the 23.6% Fibonacci of 142.92.
In brief, USDJPY is sending mixed signals. An extension above 148.30 or below 147.00 could provide new direction to the market./h5
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