InstaForex

September 28, 2021

Can USD/JPY Continue To Rise After 200 Pips Jump?

 The price movement on the chart of the USD/JPY currency pair presented stylish action with an aggressive surge to record an increase of around 220 pips from last week’s lows.


The Yen continued to be driven weakly as the Bank of Japan (BOJ) maintained policy easing by setting interest rates unchanged at -0.10%.


In addition, the 10 -year government bond yield target is also set at 0%.


The greenback continued to show ‘stripes’ to remain strong in the European session today (Tuesday) and thus support the USD/JPY to reach higher gains.


But investors need to be wary of the US dollar which Federal Reserve (Fed) Chairman Jerome Powell will deliver a speech tonight and is likely to influence the next direction for the USD.


If observed on the chart of the USD/JPY currency pair, the price remains rising around 45 pips to continue the higher uptrend.



A stronger strengthening of the US dollar is expected to push the price back towards the resistance zone recorded in early July trading around 111.640.


A higher rise will test the next resistance zone at 112,200 which is the hardest zone to break in the last 19 months.


The RBS (resistance become support) zone of 110.800 will return to target if the price fails to break the resistance zone of 111.640 and make a decline again to make the latest HL (higher low).


The lower decline is likely to pass the Moving Average 50 (MA50) barrier level in the 1 -hour time frame to retest the RBS 110.100 zone and give a bearish price signal.