Technical Analysis – USDJPY storms to a fresh 6-month peak
May 25, 2023 3:26 pm
USDJPY has been trading within an upward sloping channel since mid-March, crossing above crucial technical levels such as both its 50- and 200-day simple moving averages (SMAs). In today’s session, the pair recorded a fresh six-month high as the bulls seem to have gained total control.
The momentum indicators currently suggest that buying forces are strengthening near their overbought territories. Specifically, the MACD histogram is gaining ground above both zero and its red signal line, while the RSI has flatlined slightly below the 70-overbought mark.
If buying pressures persist, initial resistance could be found at the November 2022 resistance of 142.24. Surpassing that zone, the pair might ascend towards the September high of 145.89 before the 148.80 hurdle appears on the radar. A violation of the latter could set the stage for the 32-year high of 151.94.
On the flipside, should the uptrend lose steam and the price reverse lower, the March high of 137.90 could serve as support in the future. If that floor collapses, the bears may aim for 135.31 before attention shifts to the 133.00 support territory. Further declines could then cease at the April low of 130.62.
Overall, USDJPY seems to have the necessary momentum to edge higher and extend its structure of higher highs. However, a downside correction should not be ruled out as the pair is approaching overbought conditions.
USDJPY has been trading within an upward sloping channel since mid-March, crossing above crucial technical levels such as both its 50- and 200-day simple moving averages (SMAs). In today’s session, the pair recorded a fresh six-month high as the bulls seem to have gained total control.
The momentum indicators currently suggest that buying forces are strengthening near their overbought territories. Specifically, the MACD histogram is gaining ground above both zero and its red signal line, while the RSI has flatlined slightly below the 70-overbought mark.
If buying pressures persist, initial resistance could be found at the November 2022 resistance of 142.24. Surpassing that zone, the pair might ascend towards the September high of 145.89 before the 148.80 hurdle appears on the radar. A violation of the latter could set the stage for the 32-year high of 151.94.
On the flipside, should the uptrend lose steam and the price reverse lower, the March high of 137.90 could serve as support in the future. If that floor collapses, the bears may aim for 135.31 before attention shifts to the 133.00 support territory. Further declines could then cease at the April low of 130.62.
Overall, USDJPY seems to have the necessary momentum to edge higher and extend its structure of higher highs. However, a downside correction should not be ruled out as the pair is approaching overbought conditions.
Related Posts: