USD/JPY Price Analysis: Violates five-year high at 116.30, bulls are hopeful to visit 118.00

• A bullish open drive day has pushed USD/JPY above a five-year high.
• The 50-period Exponential Moving Average will act as a bid area for the major.
• The RSI (14) is on the verge of breaching 60.00, showing no signs of being overbought.

The USD/JPY pair has witnessed a bullish open drive move on Friday in which the asset continues to move north since the first tick of the trading session. The major has continued a four-day winning streak on Friday, which has helped the pair to violate a five-year high at 116.34.

On a daily scale, USD/JPY has surpassed the February 10 high at 116.34, which coincides with January 5 high. The trendline placed from 5 January 2021 around 102.60 acted as major support for the spot.

The Relative Strength Index (RSI) (14) oscillated in a range of 40.00-60.00 and is on the verge of overstepping 60.00, which will trigger a bullish set-up and activate greenback bulls for more upside. The oscillator is not showing any sign of being overbought.

The 50-period Exponential Moving Average (EMA) at 115.10 will continue to act as a bid area for the major.

For more upside, bulls need to surpass Monday’s high at 116.54, which will send the pair to a round figure of 118.00. A breach of the latter will drive the major to an ultimate resistance near 15 December 2016 high at 118.67.

On the contrary, bears can take control if the major plunge below Thursday’s low at 115.80. This will drive the pair towards 50-period EMA at 115.10 and February 24 low at 114.40.

USD/JPY daily chart