USD/JPY was trading at its multi-year high on Wednesday at around 114.81, the strongest since October 20 and then pulled back modestly. The pair, however, could be heading towards a major resistance barrier of 115.00. At the time of reporting, it peaked at 114.93 with a low of 114.78. The combination of higher US T-bond yields, rising equity prices and a rally of the US dollar across the board helped the pair to take up more ground.

At this point, if the currency can break the near-side resistance of 115.00, there really aren't any significant chart points until the December 2016 high near 118.65.

In addition to this, positive Merchandise Trade Balance Total (October), released by the Japanese Finance Ministry on Tuesday, shows a trade surplus at 67.4 billion Yen ($586.60 million). However, a Reuters report suggests that Japan's export growth snapped 7-month double-digit expansion in October, led by a decrease in US and China-bound car shipments.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

King Dollar is standing near yearly high now and is finding strong resistance at 115.0 and the major technical indicators like MACD, Stochastic and Relative Strength Index are trading in a strongly overbought zone. The aforementioned indicators on the interday and daily time frames will struggle to adapt to a bearish correction and stabilize itself. This move is like to drive the marktet towards 114.25 and further exponential moving average 50 in the four hour time frame at 114.0. A much strong dovish pull back is expected and Dollar Yen will be facing 113.0 - 112.80. On the bullish side, if US Dollar managed to break above 115.0 - 115.20 price aciton, this would open doors for gains towards 118.0. 

USDJPY Trading Near Yearly Highs

Nov 17 2021