USD/JPY Price Analysis: Trades at 24-year highs above 140.00, eyeing August 1998 highs
01.09.2022, 21:36

USD/JPY Price Analysis: Trades at 24-year highs above 140.00, eyeing August 1998 highs

  • The USD/JPY extended its gains during the week, up by almost 2%.
  • The major’s first resistance would be 141.00, which, once cleared, would pave the way towards 147.67.

The USD/JPY rose to fresh 24-year highs on Thursday, spurred by a risk-off impulse and higher US Treasury bond yields, produced by higher expectations that the US Federal Reserve would further tighten monetary conditions. Therefore, the USD/JPY climbs 0.90% and exchanges hands at 140.20.

USD/JPY Price Analysis: Technical outlook

The USD/JPY daily chart illustrates the strong uptrend, which began in March of 2022. On its first leg up, the major rallied towards the 130.00 area before registering a pullback towards 128.00, ahead of the most significant move towards the 139.39 previous YTD highs, reached July 14. Worth noting that a negative divergence between the Relative Strength Index (RSI) registering a successive series of lower highs, contrarily to price action, triggered the pullback towards the August 2 swing low at 130.39.

At the time of writing, the USD/JPY broke above the 140.00 mark, finishing Thursday’s session at around 140.19. The Relative Strength Index (RSI) is at the door of reaching overbought conditions, though it should be noted that the major retreated when the RSI reached 71.20.

The USD/JPY next resistance would be the psychological 141.00 figure. Once cleared, the USD/JPY next stop would be the August 1998 highs at 147.67.

USD/JPY Key Technical Levels

 

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