The USDJPY experienced a significant uptrend last week following the Bank of Japan (BOJ) President Ueda's decision to maintain the current interest rates. As shown in the 4-hour chart, the currency pair reached a peak of 136.55 on Friday before retreating slightly to close at 136.285. The upward momentum persisted during today's trading session, with the pair climbing to 136.977, just shy of the significant resistance level of 137.000 and the 100-day moving average (at the same level).
The USDJPY now faces a critical swing area dating back to February 28, March 2, and March 10. Although the price briefly surpassed the swing area to reach 137.911 on March 8, it subsequently fell back below on March 9 (indicated by the red shaded region). A break above 137.095 would prompt traders to target the previous high.
Examining the hourly chart, immediate intraday support is anticipated around the 136.55 level, which corresponds to Friday's high. Today's price action indicates two separate hourly tests of this level. If the price slips below, we can expect additional corrective downside exploration, with support targets at today's low of 136.141 and Friday's swing low of 135.828. The 38.2% retracement of Friday's sharp rise is at 135.568, which serves as another potential support level.
For the time being, buyers maintain an advantage, but the 200-day moving average and the swing area could pose challenges to the ongoing rally.
This article was written by Greg Michalowski at www.forexlive.com.http://dlvr.it/SnNyNs
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