Early in the American session, the Japanese Yen is trading around 141.79 below the 21 SMA and below the 7/8 Murray. According to the 1-hour chart, a small uptrend channel has been forming within a major uptrend channel formed since June 13.
In the European session, USD/JPY reached the level last seen in November 2022 around 142.00. Bullish momentum prevails, but the USD/JPY pair should break and consolidate above another major resistance at 142.25 (top of the bullish channel) before a further steady rally.
In case the uptrend continues, the next level to watch above 142.25 is 143.27 and 143.75 (8/8 Murray). Conversely, to the downside, the strong support level is located around the 200 EMA at 140.37 and could even fall as low as 139.06 (5/8 Murray).
Our trading plan for the next few hours is to wait for a close below 141.79 on the 1-hour chart, then it could offer a signal to sell with targets at 141.40 and 140.62 (6/8 Murray).
In case USD/JPY bounces above 141.80 (21 SMA), it is expected to reach the top of the uptrend channel around 142.00. The instrument can even reach 142.25 which could be seen as a signal to sell.
On June 16, the eagle indicator reached the extremely overbought zone. So, any technical bounce could be seen as an opportunity to sell, only if the Yen trades below 142.30.