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28.12.202114:21 Forex Analysis & Reviews: Technical analysis of USD/JPY for December 28, 2021

Exchange Rates 28.12.2021 analysis

Overview :

The USD/JPY pair has climbed along a steep, upward-sloping support channel since 114.39, the pair rose at an even more ambitious incline.

We expect to see a strong reaction off this level to push price up towards 115.53 before 116.05 resistance (Fibonacci retracement, horizontal swing high resistance).

The USD/JPY pair set above strong support at the level of 114.39, which coincides with the 61.8% Fibonacci retracement level. This support has been rejected for four times confirming uptrend veracity.

Hence, major support is seen at the level of 114.39 because the trend is still showing strength above it.

Accordingly, the pair is still in the uptrend from the area of 114.39 and 114.87. The USD/JPY pair is trading in a bullish trend from the last support line of 114.39 towards the first resistance level at 115.35 (double top) in order to test it.

This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 115.35 and further to the level of 116.08.

The level of 116.08 will act as second resistance and the double top is already set at the point of 115.35.

At the same time, if a breakout happens at the support levels of 114.39 and 114.03, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.

*这里的市场分析是为了增加您对市场的了解,而不是给出交易的指示。

Mourad El Keddani,
Analytical expert of InstaSpot
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