Is the rise in USD/JPY limited to the near-term resistance line?! Can it be connected to the line linking the 2015 high and the Trump rally high?

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Following the Bank of Japan's increase in government bond purchases and the fixed-rate operation, the yen rose to 113.85.

Even with the U.S. employment data showing mixed strength, the USD/JPY attempted further upside.

In the weekly note, there was no new policy change, which was another point of attention for the week.

Supported by dollar-buying flow at London fix, it rose to 114.18.

Although there is a sense of overboughtness, a bullish candle formed on the daily chart, and

over the next 2–3 days it stayed range-bound with gradual upside, and as long as this pattern remains intact,

it would be better not to anticipate a move that would break the current trend.

If it breaks the high of 114.37 reached in May,

the lows are also gradually rising, so the 115-yen mid level touched in March could become the next target.

However, if price rises to this point, the line connecting the 2015 high and the Trump rally high is just above, suggesting there could be immediate upside resistance at this line.







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If the short-term uptrend line (upward support line from the FOMC) breaks,

the market would likely enter a corrective phase, with the upper limit of the Ichimoku chart and

the 200-day moving average as potential supports, so a more comfortable re-entry to buy is not currently advisable.

Cross-yen pairs, including EUR/JPY, are hovering around 130 and if that level cannot be sustained, a major adjustment could occur, so it’s important to stay aware and not be complacent.



Additionally, EUR/USD rose close to 1.1450 last month and tried again last week, but







could not make a new high, and if the pair breaks below the 1.1300s, a deeper correction is expected, which could also impact overall cross-yen gains.





The Nikkei average has recovered to around 20,000 on futures,

and even if it dips below 20,000, there are still many buyers, so there is potential for another upside move.



At present, foreign traders seem to be taking profits in the 20,000 range,

and if this momentum changes, we might see a push through the upper 20,000s.



Tomorrow, after the weekend, G20 meetings end, and comments from market participants will surface across markets,

but in Tokyo, the reaction to the U.S. employment data released over the weekend is expected to come first.


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