USD/JPY Uptrend Intact Despite Overbought Readings
- USD/JPY rallied further above 128.00 and traded to a new multi-year high.
- A crucial bullish trend line is in place with support near 127.75 on the 4-hours chart.
- EUR/USD failed to surpass 1.0920, and GBP/USD struggled below 1.3100.
- Gold price might correct lower towards $1,920.
USD/JPY Technical Analysis
The US Dollar remained in a strong uptrend above 125.00 against the Canadian Dollar. USD/JPY traded to a new 20-year high and even climbed above 128.50.
Looking at the 4-hours chart, the pair settled above the 128.00 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
A high was formed near 129.40 before there was a downside correction. The pair declined below the 128.00 level. However, the bulls were active near the 127.50 level. There is also a crucial bullish trend line in place with support near 127.75 on the same chart.
The pair is now rising and might climb above 128.80. The next major resistance is seen near the 129.40 level, above which the pair could rise towards 130.00.
If there is a downside correction, the USD/JPY pair might test the trend line or 127.60. The next major support is near the 127.20 level. Any more losses may perhaps open the doors for a move towards the 126.00 level.
Looking at EUR/USD, the pair attempted an upside break above the 1.0900 and 1.0920 resistance levels, but failed to gain pace. Similarly, GBP/USD failed to clear the 1.3080 and 1.3100 resistance levels.
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