On the daily chart below for USDJPY, we can see that after breaking out of the minor downward channel, the price kept on rising slowly towards the 135 handle. Most of the selloff after the Silicon Valley Bank collapse has now been erased as the banking crisis has faded.

The price is now near the key resistance at the 135 level and if the price breaks above it, we should see a rally back towards the 138 handle. The moving averages are crossed to the upside, so the buyers are in control for now.

The data to watch will be the US Jobless Claims tomorrow and the US PMIs the day after. If we see misses to the expectations, then we are likely to see a fall in the pair, on the other hand, if the data beats forecasts, then we should see the pair breaking out and rallying towards the 138 level.

USDJPY Technical Analysis

On the 4 hour chart below, we can see that after breaking above the 133.77 resistance and retesting it, the buyers kept pushing towards the 135 resistance. The whole move after the channel breakout though is diverging with the MACD, which is a sign of a weakening momentum and the price may pull back or even reverse from here. This rally to the upside is also forming a rising wedge pattern which is another sign of a possible reversal. A lot will depend on the data we get in the next days.

On the 1 hour chart below, we can see that this upside move after breaking the 133.77 resistance is starting to diverge with the MACD. So, this last leg to the upside may fail. In any case, the levels to watch here are the resistance at 135 and the support at 133.77.

If the price breaks above the resistance, the buyers should pile in and target the 138 level. On the other hand, if the price breaks below the support, the sellers are likely to jump in and push the price towards the next support at 132.00.