Oct, 11 2022
VOT Research Desk
Recent events have put the USD/JPY currency pair on the verge of testing year-to-date highs at 145.90—the 22nd of September. This move was predicted by many professionals, and more outperformance is projected with a break of 145.90 breaking a 24-year high. The unit has been trending since the beginning of 2021, with parabolic upside occurring in March and April of 2022. It is currently just a few centimeters away from weekly Quasimodo resistance at 146.79.
Be aware that a weekly 100% projection (a bearish AB=CD pattern) is located at 149.66, right above the price of 146.79. Weekly support is right behind daily support in terms of supporting structure, coming in at 137.23.
The 22nd of September high at 145.90 is expected to be tested on the H1 due to the ongoing upswing, with a push perhaps sparking breakout buying to take on 146. Breakout buyers may potentially be drawn above this area, focusing on the weekly Quasimodo resistance level at 146.79.
Price has been trading above the 200-day simple moving average, which is now at $128.84, since February 2021, which helps identify trends even more. In addition, the SMA has been pointing upward since April 2021, which is a common trend-following strategy.
Turning to the H1 timeframe, a brief retest of resistance-turned-support at 145.32 occurred in the early hours of European trade. As previously mentioned, renewed bidding later emerged and brought price within striking distance of the 145.90 top (22nd September) and 146; a break of this region would cause the currency pair to retest 24-month highs and possibly start moving in the direction of the weekly timeframe’s Quasimodo resistance from 146.79.
