The USDJPY currency pair is displaying significant rebound potential after successfully breaking through the upper boundary of the bearish channel that had previously contained price movements. This breakout signifies a weakening of selling pressure, paving the way for buyers to regain control of the market.
This positive signal is further supported by the Stochastic indicator, which is currently in the oversold zone, indicating that prices have reached a state of excessive selling and may be poised for recovery. If bullish momentum persists, USDJPY could test the next resistance levels as a subsequent target for price increase.
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USDJPY has the potential to continue its strengthening as prices have managed to remain above the bullish trendline, indicating that the uptrend is still intact. Additionally, the Commodity Channel Index (CCI) has successfully rebounded from the oversold area, further enhancing this bullish outlook. The CCI rebound suggests that bearish momentum is subsiding, creating opportunities for buyers to reclaim market dominance. With this confirmation, USDJPY may test the resistance level of 149.240.
Technical Reference: Buy while above 147.965
Potential Take Profit 1: 149.035
Potential Take Profit 2: 149.235
Potential Stop Loss 1: 148.220
Potential Stop Loss 2: 147.965
