Has the USDJPY Started a New Breakout?

February 6, 2023
by Joseph Jeffriess, Market Analyst

Are we seeing the signs point to a new breakout in USDJPY?

After Friday’s surprise jobs report, the USD continued its revival. Combined with a weaker JPY, this led to a 2.07% surge to close out the week, and Friday’s bar also formed a breakout bar breaking the medium-term trend we have seen since October 2022. There are other price actions incorporated into this that we have covered in our analysis video.

The EURJPY has also beaten resistance, but the USDJPY looks a touch cleaner chart-wise at present.

Could we see a new trend start on the USDJPY? We want to see the price maintain a level above last Friday’s close, or if we see further selling, we want to see 130.50 hold. It would be a worrying sign for buyers if we see the price move back below 129.30, and it could be a bust if the price moves back below 128.

What do you think? Do you think we have a new move higher starting?

USDJPY Analysis video

Good trading.

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