USDJPY Technical Analysis Report 6 May, 2024
- The USDJPY currency pair is expected to rise further, with the next resistance level projected at 156.00.
- This follows a recent reversal from a powerful support zone, sparking a daily uptrend.
- Widespread bearish sentiment affecting the yen across the FX markets is also contributing to this projected rise.
Market Analyst Dmitry Chernovolov predicts a rise in the USDJPY currency pair, following a reversal from a major support zone. The next resistance level is projected at 156.00, with bearish sentiment across the FX markets contributing to this uptrend.
USDJPY Reverses from Support Zone
The USDJPY currency pair recently reversed up from a powerful support zone that lies between the major support level of 152.00 (a former multi-month high from last November, acting as support after it was broken in April) and the 38.2% Fibonacci correction of the previous upward impulse from December. This reversal has created a daily Japanese candlesticks reversal pattern known as the Hammer, marking the end of the previous corrective wave 4.
Projected Rise to Resistance Level 156.00
Given the clear daily uptrend and the widespread bearish sentiment affecting the yen across the FX markets, the USDJPY currency pair can be expected to rise further toward the next resistance level of 156.00. This resistance level marks the top of the previous reversal high from the start of May. The bearish sentiment across the FX markets is contributing to this projected rise, as investors are showing a preference for the dollar over the yen.
Conclusion
In conclusion, the USDJPY currency pair is expected to continue its upward trend, with the next resistance level projected at 156.00. This follows a recent reversal from a major support zone and is supported by widespread bearish sentiment across the FX markets. Investors should monitor these developments closely and consider their potential impact on their trading strategies.
