USD/JPY Price Forecast: Breaks higher, extends counter-trend recovery rally

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USD/JPY Price Forecast: Breaks higher, extends counter-trend recovery rally
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USD/JPY breaks clearly above the 147.24 October 3 high on an intraday basis which suggests a continuation of the short-term uptrend with a tentative target at 149.40, the August 15 high.

USD/JPY breaks above a critical level and extends its bullish advance. Bullish momentum could signal an extension. Alternatively it may have completed a three-wave correction which could eventually roll over. USD/JPY Daily Chart The strong bullish momentum since the August bottom, as measured by the Moving Average Convergence Divergence indicator could indicate the start of a new, longer uptrending move.

In addition, therobust recovery from the December ‘23 and September lows – which has taken price back above the major trendline for two days and the key September 2 highs –is further evidence of bullishness. Alternatively, the pair might also looklike it is close to completingan “abc” three-wave corrective pattern of the down move that began after prices rolled over following the July peak. A close below the 50-day Simple Moving Average at 145.

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