USD/JPY: Bulls Pausing Under New Multi-Year High Before Fresh Push Higher

Technical analysis of Forex market

The USDJPY is taking a breather under new 24-year high on Wednesday, as overbought conditions prompt some profit-taking after the pair advanced 3.3% in past three days and traded at levels last seen in 1998.

Overall picture shows bulls fully in play, as dollar remains well supported by strong safe-haven demand, expectations for Fed to remain hawkish in coming months and weakness of its major counterpart.

Shallow dips signal positioning for fresh push higher, with former top at 135.57 and rising 10DMA (134.73) to ideally contain.

Fibonacci projections at 137.13 and 138.09 mark next target, with violation of the latter to unmask psychological 140 barrier.

Res: 136.70; 137.13; 137.61; 138.09.
Sup: 135.81; 135.57; 134.73; 134.09.

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