USDJPY is experiencing a strong build-up of bullish momentum, as indicated by several technical indicators on the 1-hour time frame. The Exponential Moving Average (EMA) setup is particularly noteworthy, with the EMA 50 positioned above the EMA 200, a classic bullish signal suggesting that the current upward trend is likely to continue.
Further supporting the bullish sentiment are the Ichimoku cloud indicators. The Chikou span, Tenkan-sen, and Kijun-sen lines are all positioned above the cloud. This alignment typically indicates a strong bullish trend, reinforcing the positive outlook for USDJPY.
The MACD (Moving Average Convergence Divergence) signal line is another key indicator currently favoring the bulls. With the MACD signal line above the zero line, it suggests that the momentum is firmly on the side of the buyers. Additionally, the Relative Strength Index (RSI) is in the bullish zone, having broken above the 60% level and maintaining its value without falling below 40%. This behavior is often interpreted as a sign of sustained bullish pressure.
Traders should watch the key resistance level at 157.00, which aligns with the 161.8% Fibonacci extension of the previous swing low. This level could act as a significant barrier to further gains. Conversely, the lower side of the Ichimoku cloud represents a key support level, providing a safety net for any potential pullbacks.
Overall, the technical indicators on the 1-hour chart suggest that the bullish momentum in USDJPY is likely to persist, with the potential for further gains if key resistance levels are breached.
Forecast 5.50% vs Previous 5.50%
Forecast 2.1% vs Previous 3.2%
Forecast 4.21M vs Previous 4.19M
Forecast -2.400 vs Previous -2.508M
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