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Taking advantage of the recent closure of monthly and weekly trading, today, we will conduct a technical analysis on another very interesting main dollar/yen currency pair. The main feature of this trading instrument can be considered the fact that both the Japanese yen and the US dollar, depending on the situation and market sentiment, act as protective assets. They are safe-haven currencies. So, let's start debriefing from the oldest time interval.
Monthly
The USD/JPY currency pair completed the last month of the past 2021 with a confident and fairly strong growth. However, the bulls did not have enough time or strength to break through the key resistance level of 115.54 at that time. Nevertheless, the bullish mood of this trading instrument was confirmed already on the first trading day of the new year. At the time of writing this article, the pair is already trading above the sellers' resistance of 115.54, near the level of 115.85. In my personal opinion, this factor should be perceived as the willingness and ability of players to increase the rate and further move the quote up. Thus, at this stage of time, the bullish trend for USD/JPY is not completed and has every chance of being continued. On the other hand, the January auction has just started, and there is still a lot of time for the situation to change. We will observe, but so far there is a fairly strong bullish mood on the most senior timeframe.
Weekly
On the weekly chart, in favor of continuing the bullish scenario, it was possible to perceive the fact of closing the last candle of last year above the most important historical psychological and technical level of 115.00. And indeed, the start of trading of the current five-day period so far confirms the bullish intentions of the market for USD/JPY. Nevertheless, despite this, I would refrain from unambiguous and conclusions for the time being. I think that a lot will depend on what data on the US labor market will be released on January 7. Let me remind you that this most important indicator will crown the current weekly trading, and can make significant adjustments to the price dynamics of the dollar/yen currency pair. In the meantime, at this stage of time, preference should be given to continuing growth and opening deals on the current bullish trend. If the breakdown of the resistance level of 115.54 turns out to be true, and the quote is fixed above this level, on a rollback to it, I recommend looking for options for opening long positions, the nearest goal of which we will consider another landmark level of 116.00. With a high degree of probability, this week we will return to the consideration of this currency pair, analyze smaller time intervals, where we will try to find more accurate prices for opening positions. And at this point, USD/JPY bulls are steering.
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