Analysis of USD/JPY Price: Bulls Aim to Test Crucial Resistance at 132.60, with Attention on 50% Reversion and Support Levels

Time Stamp: March 21, 2023 3:52 PM
Source Node: 2526170

The USD/JPY currency pair has been on a bullish run since the beginning of the year, with the pair currently trading at 131.50. The bulls are aiming to test the crucial resistance level at 132.60, which is a key level to watch in the coming weeks.

One of the key factors driving the bullish momentum in the USD/JPY pair is the improving economic outlook in the United States. The US economy has been showing signs of recovery, with strong job growth and rising consumer confidence. This has led to expectations of higher interest rates in the US, which is a positive factor for the USD.

On the other hand, the Japanese economy has been struggling with deflation and weak growth. The Bank of Japan has been implementing a loose monetary policy to stimulate growth and inflation, which has kept the yen weak against the USD.

Technical analysis of the USD/JPY pair shows that the bulls are in control of the market, with the pair trading above its 50-day moving average. The next key resistance level is at 132.60, which is a crucial level to watch. If the bulls manage to break above this level, it could signal a continuation of the bullish trend.

However, there are also some key support levels to watch in case of a pullback. The first support level is at 130.80, which is the 38.2% Fibonacci retracement level from the recent rally. If the pair breaks below this level, it could signal a deeper pullback towards the 50% retracement level at 129.90.

In conclusion, the USD/JPY pair is currently in a bullish trend, with the bulls aiming to test the crucial resistance level at 132.60. However, there are also key support levels to watch in case of a pullback. Traders should keep a close eye on these levels and adjust their positions accordingly.