Technical Analysis – USDJPY in a relentless rally, eyeing November 2022 highs
June 19, 2023 3:28 pm
USDJPY has been trading within an upward sloping channel since mid-March, crossing above crucial technical levels and posting consecutive higher highs. Moreover, the ascending 50-day simple moving average (SMA) is set to post a golden cross with the 200-day SMA, which could enable the pair to extend its advance.
The momentum indicators currently suggest that bullish forces are reigning supreme. Specifically, the RSI has flatlined just shy of the 70-overbought mark, while the MACD jumped above its red signal line in the positive territory.
Should buyers try to push the price higher, initial resistance could be met at the November 2022 peak of 142.24. Violating that zone, the pair could ascend towards the September high of 145.89 before the 148.80 hurdle appears on the radar. A break above the latter might open the door for the 32-year high of 151.94.
Alternatively, should the uptrend lose steam and the price reverse lower, the recent resistance of 140.90 could serve as initial support. If that floor collapses, the bears might aim for the June low of 138.42 before the spotlight turns to 137.90. Further declines could then cease at the 135.51 territory.
Overall, USDJPY has been stuck in a steep uptrend, but the price is approaching overbought conditions as it has been trading above its upper Bollinger band for the past three daily sessions. However, unless the bullish pattern gets violated to the downside, the uptrend will most likely resume.
USDJPY has been trading within an upward sloping channel since mid-March, crossing above crucial technical levels and posting consecutive higher highs. Moreover, the ascending 50-day simple moving average (SMA) is set to post a golden cross with the 200-day SMA, which could enable the pair to extend its advance.
The momentum indicators currently suggest that bullish forces are reigning supreme. Specifically, the RSI has flatlined just shy of the 70-overbought mark, while the MACD jumped above its red signal line in the positive territory.
Should buyers try to push the price higher, initial resistance could be met at the November 2022 peak of 142.24. Violating that zone, the pair could ascend towards the September high of 145.89 before the 148.80 hurdle appears on the radar. A break above the latter might open the door for the 32-year high of 151.94.
Alternatively, should the uptrend lose steam and the price reverse lower, the recent resistance of 140.90 could serve as initial support. If that floor collapses, the bears might aim for the June low of 138.42 before the spotlight turns to 137.90. Further declines could then cease at the 135.51 territory.
Overall, USDJPY has been stuck in a steep uptrend, but the price is approaching overbought conditions as it has been trading above its upper Bollinger band for the past three daily sessions. However, unless the bullish pattern gets violated to the downside, the uptrend will most likely resume.
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