The USDJPY is moving to a new session high and in the process is now moving further away from the 50% midpoint of the move down from teh February high at 148.676, and a swing area between 148.82 and 148.888. The high price reached 149.06 so far.
The next upside target comes in at 149.196. That level is the 61.8% retracement of the move down from the February high. It also is a swing area going back to February 12 and again on February 29 (see red number circles on the chart above).
Get above that level and it opens a door for even further upside potential.
On the downside, it would now take a move back below 148.824 (the low of the aforementioned swing area) to disappoint the buyers and likely lead to selling back toward the 50% midpoint at 148.676.
For now, the buyers are in control.
Next week, the Bank of Japan rate decision will be announced. Some are looking for an early tilt toward tighter policy on the back of expectations for higher wage demands. That should straighten the JPY all things equal which runs counter to the current move. Nevertheless, the technicals are showing a more bullish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source