USD/JPY Price Analysis: Extends Monday’s bounce as buyers eye 116.00

• The USD/JPY buyers need a daily close above 115.60 to cement an attack towards the YTD high at 116.35.
• USD/JPY Technical Outlook: It is upward biased, confirmed by DMAs and RSI in bullish territory.

On Tuesday, the USD/JPY bounces off a two-month-old downslope trendline, the previous resistance-turned-support around the 115.00-15 area, at the same time reclaim above November 24, 2021, high at 115.51, a prior supply zone. At the time of writing, the USD/JPY is trading at 115.64.

USD/JPY Price Forecast: Technical outlook

The USD/JPY is upward biased, as depicted by the daily moving averages (DMAs) located well below the spot price. Additionally, a daily close above the January 28 daily high at 115.68 would further cement the upward bias, as USD/JPY buyers attempt to challenge the 116.35 daily low for the second time in the year. Further confirmation by the Relative Strength Index (RSI) at 59 aiming up has enough room before reaching overbought conditions.

That said, the USD/JPY first resistance would be 116.00. Breach of the latter would expose the YTD high at 116.35, followed by a challenge of a 24-month-old downslope trendline around 117.00. A clear break of that ceiling level would pave the way towards January 2017 swing high at 118.61.

On the flip side, the USD/JPY first support would be February 14 daily low at 115.00. A sustained break would expose the 50-DMA at 114.67, followed by the February 2 low at 114.14 and then the 100-DMA at 114.07.