USD/JPY Price Analysis: Climbs toward 154.00 after bouncing off the 50-DMA
- USD/JPY climbs over 0.60% from two-week low, as positive sentiment reduces yen's safe-haven appeal.
- Hammer candlestick at 152.97 on Friday signals potential upward momentum.
- Resistance seen at 154.00, with further targets at 155.52 (Tenkan-Sen) and 155.78 (Senkou Span A).
The USD/JPY bounced off a two-week low and climbed toward the 153.90ish area, shy of decisively cracking the 154.00 mark. It is trading with gains of more than 0.60%. The market sentiment is upbeat, a headwind for safe-haven currencies like the Japanese Yen (JPY).
USD/JPY Price Analysis: Technical outlook
The USD/JPY remains upward biased. On Friday, the pair hit the two-week low of 151.99, though finished the session at 152.97, forming a ‘hammer,’ a candlestick chart pattern. This chart pattern is bullish when preceded by a downtrend, but it needs to be followed by a candle that breaches the ‘hammer’s’ high.
With that said, the USD/JPY cleared the May 3 high at 153.80, opening the door for further gains. Therefore, the first resistance would be the 154.00 mark. Once cleared, up next would be the Tenkan-Sen at 155.52, followed by the Senkou Span A at 155.78. Further gains are seen at 156.05.
For a bearish resumption, sellers must clear the 50-DMA at 151.99, which could pave the way to testing the following lowest low at 150.81.
USD/JPY Price Action – Daily Chart
