USD/JPY Price Forecast: Breaks higher, extends counter-trend recovery rally
|- USD/JPY breaks above a critical level and extends its bullish advance.
- Bullish momentum could signal an extension.
- Alternatively it may have completed a three-wave correction which could eventually roll over.
USD/JPY breaks clearly above the 147.24 October 3 high on an intraday basis which suggests a continuation of the short-term uptrend with a tentative target at 149.40, the August 15 high.
USD/JPY Daily Chart
The strong bullish momentum since the August bottom, as measured by the Moving Average Convergence Divergence (MACD) indicator could indicate the start of a new, longer uptrending move.
In addition, the robust recovery from the December ‘23 and September lows – which has taken price back above the major trendline for two days and the key September 2 highs – is further evidence of bullishness.
Alternatively, the pair might also look like it is close to completing an “abc” three-wave corrective pattern of the down move that began after prices rolled over following the July peak.
A close below the 50-day Simple Moving Average (SMA) at 145.24 would probably indicate a resumption of the medium-term downtrend from the summer. Such a move would be expected to reach the wave B lows at around 141.72.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.