The US Dollar gained pace above the 128.00 resistance against the Japanese Yen. The USD/JPY pair even traded above 128.50 and formed a new multi-year high at 129.40.
Recently, there was a downside correction below 129.00. There was a break below a key bullish trend line with support near 128.15 on the hourly chart. However, the bulls were active near the 127.00 level. It is now back above 127.50 and the 50 hourly simple moving average.
On the upside, an immediate resistance is near the 128.20 level. A clear break above the 128.20 resistance could push the price towards 128.80. The next major resistance is near the 129.20 level or 129.40 on FXOpen.
On the downside, an initial support is 127.50. The next major support sits near the 127.00 level, below which there is a risk of more downsides. In the stated case, the pair could decline towards the 126.20 level.
