USD/JPY Price Analysis: Bulls renew six-year high at 120.50, looks to settle around 122.00

• An open-drive session has helped the greenback bulls to renew a six-year high at 120.50.
• Bulls are firmer above 10 and 20-period EMAs.
• The RSI (14) is oscillating in a bullish range of 60.00-80.00, which adds to the upside filters.

The USD/JPY pair has got an adrenaline rush, which is very much clear from the open drive session on Tuesday. The pair opened around 119.46 and continued to move upside swiftly. The asset has gained almost 0.7% in today’s session and is showing no signs of exhaustion yet. It is worth noting that the asset has renewed its six-year high after kissing 120.47 on Tuesday.

On a weekly scale, USD/JPY has witnessed a juggernaut rally after a breakout out of the rising channel on the upside. The upper end of the rising channel is placed from 2 April 2021 high at 110.97 while the lower end is marked from 8 January 2021 low at 102.59. Moreover, the asset has also surpassed its five-year-old resistance at 118.66.

The 10 and 20-period Exponential Moving Averages (EMAs) are scaling higher at 116.70 and 115.25 respectively, which adds to the upside filters.

The Relative Strength Index (RSI) (14) is oscillating in a range of 60.00-80.00, which signals for the continuation of a bullish trend.

Should the major test its ground at 118.66, a build-up of fresh bids will drive the pair towards the psychological resistance of 120.00, followed by a 5 February 2016 high at 121.49.

On the flip side, bears can take control if the pair slips below March 15 low at 117.70. This will drag the pair towards 10 and 20-period EMAs at 116.70 and 115.25 respectively.

USD/JPY weekly chart