USD/JPY Trading Near 1998 High

USD/JPY Technical Outlook:Neutral

• USD/JPY pullback may continue in the near-term
• 1998 high over 14700 looks poised to get tested at some point

Japanese Yen (JPY) Technical Outlook: USD/JPY Trading Near 1998 High

The USD/JPY strength we saw last week carried the price up towards the 1998 high at 14767 before stalling out right around 14500. The stall and revers has a minor reversal week carved out, but nothing too bearish-looking.

It could lead to a pullback in the near-term, but another push into long-term resistance is anticipated after some weakness. There is slope support being tested for the first time as support, with the line running up beneath the Friday low arriving from a March pivot that crosses near the May low.

This slope has a couple of other instances that are below that have been influential. The big price level to watch, though, that has even more attention is the July high at 13938. A test and hold of this level would increase a bullish bias.

Horizontal price action from here that digests the recent run would also be considered with short-term levels getting carved out via a range. This could also set up for a bullish bias towards the 1998 high. In the event we get to the 1998 high watch price action closely as it may induce a broader pullback upon a failure.

For now, in wait-and-see mode until the chart cleans itself up a bit and provides some solid directional cues.

USD/JPY Price Daily Chart

USD/JPY Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX