Oct 04, 2022
VOT Research Desk
Analytical Viewpoint USD/JPY
As the September Tokyo core CPI exceeded expectations, the Japanese yen recovered. Price recovery from the preceding sell-off indicates that sentiment is still positive despite a brief setback.
In the coming weeks, the uptrend might resume with a closure above the most recent top at 145.80. The next aim would be the peak from August 1998, which was 147.50. The lower end of a brief consolidation (143.90) is the first support in case of a pullback as the RSI rises into overbought zone.
Technical analysis
Daily Pivots: (S1) 144.06; (P) 144.67; (R1) 145.17;
The intraday bias is still neutral as USD/JPY trades below 145.89 while remaining in range. As long as resistance turned support at 139.37 holds, further surge is anticipated.
Break of 145.89 will aim for long-term resistance at 147.68. However, a clear break below 139.37 will guarantee a short ter. The overall uptrend from 75.56, which includes the uptrend from 101.18, is continuing in process (2011 low).
Upward movement should continue to 147.68 (1998 high). For the time being, a break of support around 130.38 must occur before there is a medium-term topping signal. In any other circumstance, even in the event of a significant pullback, the prognosis will remain bright.
Back towards the 130.38 support, there would be a deeper drop.
