USDJPY has rallied 600 pips in the first 5 trading days of September 2022. Wow!! This is an aggressively Bullish pair as major institutions like JP Morgan have raised their interim long targets to 147.50 (August 1998 high).
While I share that same target, there is a possibility of a Reversal at 145 psychological resistance level. Price is currently trading at uncharted territory from the last two decades and this extended run may soon come to an end.
The 250-pip range from 145.00 to 147.50 could cap the strong Bullish run in the interim. The RSI is at the overbought area on the Daily Chart.
The Monthly Chart above shows the last time price hit 145.00/ 147.50. I expect a reaction from this level towards 142.50/ 140.00 if the level holds
On the bigger picture, if price breaks past 145/ 147.50, price may head towards 160.00, 32 year resistance level (April 1990 high).
While I share that same target, there is a possibility of a Reversal at 145 psychological resistance level. Price is currently trading at uncharted territory from the last two decades and this extended run may soon come to an end.
The 250-pip range from 145.00 to 147.50 could cap the strong Bullish run in the interim. The RSI is at the overbought area on the Daily Chart.
The Monthly Chart above shows the last time price hit 145.00/ 147.50. I expect a reaction from this level towards 142.50/ 140.00 if the level holds
On the bigger picture, if price breaks past 145/ 147.50, price may head towards 160.00, 32 year resistance level (April 1990 high).
Comment:
Price has dipped 250 pips decline from 145 (142.50)