Technical Analysis – USDJPY battles with 50-SMA within symmetrical triangle
June 12, 2023 3:25 pm
USDJPY has been generating a structure of lower highs but higher lows after peaking at the 2023 high of 140.92 in late May. In the near term, the price has been trading sideways as the 50-period simple moving average (SMA) and the upper end of the Ichimoku cloud have repeatedly capped its upside.
The short-term oscillators currently suggest that bullish forces are intensifying. Specifically, the MACD jumped above its red signal line but remains in the negative territory, while the RSI crossed aggressively above its 50-neutral mark.
Should buying pressures persist, the recent resistance of 139.72 could initially curb the pair’s upside. Jumping above that zone, the price might test 140.24 before the June peak of 140.45 appears on the radar. A break above the latter could pave the way for the double-top region of 140.92.
To the downside, bearish actions may send the price to challenge the recent support of 139.05. If that barricade fails, the bears could target 138.75 before the June low of 138.42 gets tested. Further declines could then cease at the 137.77 hurdle.
In brief, USDJPY has formed a symmetrical triangle pattern in the short-term, hinting that a breakout could occur soon.
USDJPY has been generating a structure of lower highs but higher lows after peaking at the 2023 high of 140.92 in late May. In the near term, the price has been trading sideways as the 50-period simple moving average (SMA) and the upper end of the Ichimoku cloud have repeatedly capped its upside.
The short-term oscillators currently suggest that bullish forces are intensifying. Specifically, the MACD jumped above its red signal line but remains in the negative territory, while the RSI crossed aggressively above its 50-neutral mark.
Should buying pressures persist, the recent resistance of 139.72 could initially curb the pair’s upside. Jumping above that zone, the price might test 140.24 before the June peak of 140.45 appears on the radar. A break above the latter could pave the way for the double-top region of 140.92.
To the downside, bearish actions may send the price to challenge the recent support of 139.05. If that barricade fails, the bears could target 138.75 before the June low of 138.42 gets tested. Further declines could then cease at the 137.77 hurdle.
In brief, USDJPY has formed a symmetrical triangle pattern in the short-term, hinting that a breakout could occur soon.
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