USDJPY Analysis | What We Watched on 29th March 2023.

Looking at the USDJPY yesterday, it‘s a good example of multiple indications that we could be in for a new push higher. Sometimes the more evidence you have to back up an idea, the better. Sadly, however, that won’t be a guarantee it will work out!

The majors continue to observe a sold session to the JPY yesterday. The GBPJPY posted a break above resistance and outside of its downtrend.

Looking at the USDJPY, a few things have our attention that could be pointing to a new push higher. First, we can see classic divergence on the CCI, and we like to see the price confirm the divergence as it can give false signals on its own. We also see the price breaking minor resistance and the downtrend with a nice false low on the 24th, combined with support at 130.50/60.

All of these together give us lots of ammo that buyers could regain control. What we need now is a nice push higher that gives us confirmation. If buyers continue to hold momentum, we will look at 132.52 and 134.50 as resistance.

If yesterday‘s bar fails and we see a close below 131.55 minor resistance, this could be a warning and could be telling us buyers don’t hold the numbers yet