USD/JPY rises to fresh 1-week highs

By FXStreet FXStreet (Córdoba) – USD/JPY continued to rise late in the US session and printed a fresh daily high at 122.86, the strongest level since December 9. A rally of the US dollar in the market boosted the pair, that is about to end 0.60% higher versus the yen.

Earlier on the week it bottomed at 120.30 (1-month low) but then turned to the upside and today is rising for the third day in a row. Since the Federal Reserve decision to raise interest rates it climbed more than a hundred pips.

USD/JPY technical outlook

“In the 4 hours chart, the price has advanced above its moving averages for the first time in over a week, while the RSI indicator heads strongly higher near overbought levels and the Momentum indicator hovers also near overbought territory”, said Valeria Bednarik, Chief Analyst at FXStreet.

The pair holds a bullish tone in the short-term and is moving toward a key resistance area located around 123.70 that capped the upside during November and December; above it could open the doors to more gains, but before it needs to break 123.00/10. On the downside, below 122.20 the US dollar could lose momentum.

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Source:: FX Street