Technical Forecast for the Japanese Yen: USD/JPY Indecision- Breakout Pending
Japanese Yen technical forecast: USD/JPY weekly trade levels
- Japanese Yen rebounds off multi-year uptrend support
- USD/JPY sets yearly opening range around objective yearly open
- Resistance 133.20s, 134.77, 136.66– support 128.30s, 125.85-126.56 (key), 122.20s
Since the beginning of the year, the Japanese yen has traded within a 5.6% range, with USD/JPY responding to long-term uptrend support last month. The stage is set, and the levels are clear, as the price remains at the 2023 yearly open target. On the USD/JPY weekly technical chart, these are the most recent targets and invalidation levels.
The Japanese Yen has been consolidating within its January range, with USD/JPY trading just above multi-year slope support. We're looking for a breakout in the coming days to see if the broader October correction is over.
The 52-week moving average is near 133.20, and it is supported by the yearly range highs at 134.77 and the 38.2% retracement at 136.66. To mark the resumption of the broader uptrend, a breach / close above the July high-week close/slope resistance (red) at 138.48 would be required.
The lower parallel (currently 128.30s) provides initial support, followed by 125.85-126.56- a region defined by the 2015 swing high and the 50% retracement of the 2020 advance. To invalidate the broader multi-year uptrend, a break / weekly close below the original slope extending off the 2021 lows (currently 122.20s) would be required.
Bottom line: The USD/JPY rebounded off uptrend support last month, with price consolidating just above—a breakout is imminent. If the price stays within this multi-year slope, trading losses should be limited to 125.85. Once we have more clarity on the near-term USD/JPY technical trade levels, I will publish an updated Japanese Yen short-term technical outlook.