USDJPY has gained ground in the short term, holding above the 1-month uptrend line, despite today’s pullback so far. However, the market is still moving below the mid-term ascending trendline and waiting for a strong impulse to post a higher high.

Technically, the MACD is holding above its trigger and zero lines; however, the stochastic oscillator is weakening its momentum entering the overbought region, suggesting that the next move could be downside.

Any move beyond the 24-year high of 139.35 could take the market even higher, reaching the next psychological level of 140.00. The uptrend line drawn from support at 114.64 appears to be acting as resistance around 141.00.

On the other hand, the breach of the 137.40 support could see the losses extend towards the 20- and 40-day SMAs, which hold near the 135.55 barrier. Even lower, the bears could take the price below the short-term rising trendline around the 131.35-130.37 region.

In the medium term, USDJPY may resume an uptrend above the 24-year high of 139.35. It’s also worth noting that the short-term SMAs continue to distance above the 200-day SMA, raising optimism for a bull market.

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