USD/JPY Price Analysis: Triple bottom looms as bulls struggle at 115.80
- The USD/JPY takes a breather in a narrow 40-pip range as bulls prepare for an attack of 116.00
- A risk-on market mood weighed on safe-haven peers, though high US Treasury yields dragged the USD/JPY up.
- USD/JPY Technical Outlook: A triple-bottom stills in place and targets 117.00.
The USD/JPY tilts higher on Wednesday but faces strong resistance at the triple-bottom neckline. At press time, the USD/JPY is trading at 115.81, near the abovementioned trendline, during the North American session.
Financial markets mood remains positive, as US equity indices print gains. Factors like Ukraine’s readiness to resume talks with Russia, aiming to end war amid compromises between both countries, and Ukraine’s withdrawal of joining NATO calmed investors.
USD/JPY overnight witnessed range-bound action within the 115.60-115.95 area, which carried on through the European session. In the North American session, the pair dipped to 115.50s, resuming upwards, as the Wall Street’s close looms.
USD/JPY Price Forecast: Technical outlook
The USD/JPY is still upward biased, though it is worth noting that the daily moving averages (DMAs), which were previously well below the spot, are getting closer to the actual price.
Tuesday’s price action stalled just below the triple-bottom neckline, around 115.80. However, on Wednesdays, the pair meanders top/bottom of the latter, with not enough strength to break upwards.
The USD/JPY first resistance would be 115.80. Once cleared, the next resistance would be 116.00, followed by the YTD high at 116.35 and the triple-top target at 117.00.
