Technical Analysis: USDJPY

USDJPY reached a 2-month high

On Tuesday, USDJPY increased by 0.59% and closed to around 135.02. It reached 135.22 at one point, the highest since 21^st December 2022.

US economic data was strong

According to the data provided by Markit, US Services PMI (February) reached 50.5, the highest since June 2022, Vs. 47 (forecast). In addition, US Markit Manufacturing PMI hit a 4-month high, and US Markit PMI reached an 8-month high. Strong economic data raised the expectation that the Fed will increase the interest rate.

Japan’s 10-year treasury yield broke above 0.5%

On Tuesday, Japan’s 10-year treasury yield broke above 0.5% as traders bet that the BOJ will continue adjusting monetary policies.

Technically speaking, the market trend is bullish

the chart of the day

On the chart of the day, USDJPY continued rising. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, demonstrating that USDJPY will rise further. If USDJPY continues jumping, investors should focus on whether it will break through the resistance at 135.7.

4-hour chart

On the 4-hour chart, USDJPY fluctuated and increased. The market trend is bullish. In terms of technical indicators, the Vegas tunnel went upwards, demonstrating that the market trend is bullish. USDJPY will climb further if it is steady above the support at 134.2.

Key resistance: 135.7, 137.5

Key support: 134.2, 133.6

In summary, as the final rate is expected to continue climbing, USDJPY may rise further. Investors should focus on the Fed’s February monetary policy meeting minutes during the day.