<p>On the daily chart below, we can
see that long falling channel has been broken after the strong <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report and the price is now
targeting the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 134.50. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are now pointing north and the red long period moving average acted as <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> for the pullback. </p><p>We can also see that the entire
channel was <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> and given the current repricing
in interest rates expectations we may see a big correction all the way up to
the 142.17 level where we can also find confluence with the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci</a> level. The upcoming economic
data will drive the ebb and flow of the market.</p><p>On the 4 hour chart below, we can
see that after breaking out of the channel, the price pulled back to the
nearest swing support level at 130.53 where we had also the 50% Fibonacci
retracement level for further <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a>. </p><p>We can see that there was also a
spike lower to the 61.8% Fibonacci retracement and the 130.00 level. That was a
kneejerk reaction to a <a target=“_blank“ href=“https://www.forexlive.com/centralbank/japan-government-reportedly-likely-to-nominate-kazuo-ueda-as-new-boj-governor-20230210/“>report</a> that Kazuo Ueda will be the next
BoJ governor. </p><p>This is because in the past Ueda
had hawkish comments on BoJ policy, and some short term traders/algos
interpreted that as a sign for an upcoming change in monetary policy. </p><p>The USD/JPY is mainly driven by <a target=“_blank“ href=“https://www.tradingview.com/symbols/TVC-US10Y/“>US long term yields</a> though and those have been
surging as the market repriced interest rates expectations. The next target
looks to be the resistance at 134.50 where we can also find the 127.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-utilizing-fibonacci-extensions-20220422/“>Fibonacci
extension</a> level. </p><p>On the 1 hour chart below, we can
see that there’s a divergence going on between the price and the MACD. This is
a signal of a weakening buying momentum and we may see a pullback before
another leg up. </p><p>The support level for the
retracement should be the 131.82 level as we can see it held the price quite
well both on the upside and on the downside. Today’s <a target=“_blank“ href=“https://www.forexlive.com/news/why-wednesdays-us-retail-sales-report-could-be-stronger-than-expected-20230214/“>Retail
Sales</a> report may give us some movement as a beat to the expectations should
lead to further upside and a miss should give us the pullback to 131.82. </p>
see that long falling channel has been broken after the strong <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report and the price is now
targeting the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 134.50. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are now pointing north and the red long period moving average acted as <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> for the pullback. </p><p>We can also see that the entire
channel was <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> and given the current repricing
in interest rates expectations we may see a big correction all the way up to
the 142.17 level where we can also find confluence with the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci</a> level. The upcoming economic
data will drive the ebb and flow of the market.</p><p>On the 4 hour chart below, we can
see that after breaking out of the channel, the price pulled back to the
nearest swing support level at 130.53 where we had also the 50% Fibonacci
retracement level for further <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a>. </p><p>We can see that there was also a
spike lower to the 61.8% Fibonacci retracement and the 130.00 level. That was a
kneejerk reaction to a <a target=“_blank“ href=“https://www.forexlive.com/centralbank/japan-government-reportedly-likely-to-nominate-kazuo-ueda-as-new-boj-governor-20230210/“>report</a> that Kazuo Ueda will be the next
BoJ governor. </p><p>This is because in the past Ueda
had hawkish comments on BoJ policy, and some short term traders/algos
interpreted that as a sign for an upcoming change in monetary policy. </p><p>The USD/JPY is mainly driven by <a target=“_blank“ href=“https://www.tradingview.com/symbols/TVC-US10Y/“>US long term yields</a> though and those have been
surging as the market repriced interest rates expectations. The next target
looks to be the resistance at 134.50 where we can also find the 127.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-utilizing-fibonacci-extensions-20220422/“>Fibonacci
extension</a> level. </p><p>On the 1 hour chart below, we can
see that there’s a divergence going on between the price and the MACD. This is
a signal of a weakening buying momentum and we may see a pullback before
another leg up. </p><p>The support level for the
retracement should be the 131.82 level as we can see it held the price quite
well both on the upside and on the downside. Today’s <a target=“_blank“ href=“https://www.forexlive.com/news/why-wednesdays-us-retail-sales-report-could-be-stronger-than-expected-20230214/“>Retail
Sales</a> report may give us some movement as a beat to the expectations should
lead to further upside and a miss should give us the pullback to 131.82. </p>
This article was written by ForexLive at www.forexlive.com.