The USD/JPY uptrend escalated after the prices flipped above 151.25. The immediate resistance is at 153.6 amid overbought signals given by the Stochastic. Before the uptrend resumes, a consolidation phase toward 152.7 is likely.
USDJPY Technical Analysis – 13-December-2024
As of this writing, the currency pair trades at approximately 153.3, testing the 61.8% Fibonacci level as resistance. The market outlook is bullish because the prices exceed the 75-period simple moving average, and Awesome Oscillator’s histogram is green and above zero.
However, the Stochastic oscillator depicts 92 in the description, meaning USD/JPY is in an overbought condition, which could cause prices to consolidate near lower support levels.
Overall, the technical indicators suggest that the USD/JPY main trend is bullish and should resume after a minor consolidation.
USDJPY Climbs Past 151.2 Facing Resistance
The critical pivot point between the bull market and a bear market is still at 151.2. That said, the immediate resistance rests at the 61.8% Fibonacci level, the 153.6 mark.
From a technical perspective, the uptrend will likely resume if bulls pull the prices above 153.6. In this scenario, the next bullish target could be 154.28, followed by 154.9.
Please note that USD/JPY has the potential to consolidate near 152.7 support before the uptrend resumes. Therefore, traders and investors should monitor this level for bullish signals such as candlestick patterns.
Additionally, the bullish outlook should be invalidated if USD/JPY falls below 151.2 support, backed by the 75-period simple moving average.