• USD/JPY rallied to a 24-year high of 136.70.
• Connecting resistance trend line at 137.00.

The US Dollar, Japanese Yen pair continued bullish above the 130.00 level. USD/JPY gained strength after breaking above the 132.50 resistance.

USD/JPY 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the USD/JPY pair broke above the 135.00 resistance level. It traded as high as a new 24-year high of 136.70, well above both the 100-MA (red) and 200-MA (blue). The pair has since corrected lower and is trading below 135.00. There was also a break below the 38.2% Fibonacci retracement level of the upward move from the swing low of 131.48 to the swing high of 136.70.

For the pair to continue bearish, the quote will first need to test support near the 133.60 level and the 100-MA (red). This is also close to the 61.8% Fibonacci retracement level (of the 131.48 low to the 136.70 high). Below this there is further support near 133.00. Further losses could see the quote drop down towards the 131.50 level and the 200-MA (blue). 

In contrast, if the pair turns bullish, it will first need to test resistance near the 135.50 level. Above this there is further resistance from the connecting trend line at 137.00.

Further gains could see the quote climb up as high as the 140.00 level.