3 min readUSD/JPY experienced strong bullish price action following the FOMC decision yesterday, and that bullish momentum has continued into today’s session. In our last update on USD/JPY, we discussed the importance of the 143.5 level. Price reclaimed that level yesterday and we have since seen a strong push higher, confirming it as a key support area.
The next area to watch is the beginning of the high time frame resistance zone, which starts around 145.5. This will be an important level to monitor for potential profit-taking or a pause in bullish momentum.
On the 4-hour time frame, we now see a clear breakout move from the 143.5 level. Breakout traders and momentum traders are likely viewing the current volatility as an opportunity to ride the trend toward the next local resistance at 145.5.
At the same time, break-and-retest traders will be watching the local breakout area around 144 as a potential re-entry or retest level should price pull back before continuing higher.
These are interesting developments for USD/JPY, and we will continue to monitor the pair closely in upcoming updates.
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