• USD/JPY rallied more than 0.60% once it broke above a one-month-old downslope trendline on Thursday.
• The 4-hour chart depicts buyers breaking above the 200-EMA, approaching the 136.00 figure.
• If the USD/JPY surpasses the 136.00 figure, a move towards 137.47 is on the cards.

The USD/JPY advances sharply in the North American session, breaking above its 50-day EMA, aiming towards the 136.00 figure, amidst a mixed market mood, with US equities fluctuating between gainers/losers. At the time of writing, the USD/JPY is trading at 135.87, above its opening price.

USD/JPY Price Analysis: Technical outlook

From a daily chart perspective, the USD/JPY is upward biased, further reinforced by buyers reclaiming the 50-day EMA at 135.40, while the Relative Strength Index (RSI) pushes towards its 60 reading, with enough room to spare, suggesting that an assault of 136.00, is on the cards.

Worth noting that on Wednesday, the USD/JPY broke above a one-month-old downslope resistance trendline, signaling that buyers are in charge.

Therefore, the USD/JPY first supply zone will be the 136.00 mark. Once cleared, the next resistance would be the 137.00 figure, followed by the July 27 daily high of 137.42.

In the near term, on the 4-hour scale, the chart illustrates the USD/JPY as upward biased. Buyers cleared the 200-EMA hurdle at 135.50, exacerbating a jump of 30-plus pips towards the USD/JPY daily highs at 135.89. Once the major clear the 136.00 figure, a rally towards 137.46 is imminent, with no supply zones on its way north.

USD/JPY 4-hour chart

USD/JPY Key Technical Levels