USD/JPY Hits New Multi-Year High, 130 Next?

Key Highlights

• USD/JPY started a fresh surge and traded above 125.00.
• A major bullish trend line is forming with support near 125.75 on the 4-hours chart.
• It traded to a new multi-year high at 126.59 and might continue to rise.
• EUR/USD extended decline and spiked below 1.1800.

USD/JPY Technical Analysis

The US Dollar formed a strong base above the 121.20 level against the Japanese Yen. USD/JPY started a strong surge above the 123.50 and 125.00 resistance levels to move into a positive zone.

Looking at the 4-hours chart, the pair even settled above the 125.00 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

The bulls pumped the pair above the 126.00 level and traded to a new multi-year high at 126.59. It is now showing positive signs and might continue to rise above 126.80. The next major resistance is near the 128.00 level, above which it could rally towards the 130.00 level.

If there is a downside correction, the pair might find support near the 126.00 zone. There is also a major bullish trend line forming with support near 125.75 on the same chart.

The next major support is near the 125.00 level. A downside break below the 125.00 support level might send the pair towards the 123.50 support level or the 100 simple moving average (red, 4-hours).

Looking at EUR/USD, the pair extended decline below the key 1.0800 support zone. If the bears remain in action, the pair could decline towards the 1.0750 level.

Economic Releases

• US Industrial Production for March 2022 (MoM) – Forecast 0.4%, versus 0.5% previous.