Technical Analysis – USDJPY gets closer to the 134.50 barrier
April 12, 2023 12:27 pm
USDJPY has been in a recovery mode recently, since it hit the upside support line drawn from the low of January 17. However, the pair seems to be struggling to overcome the 100- and 200-day exponential moving averages and thus, the short-term picture may be best considered neutral for now.
The RSI lies above 50 but it has flattened the last couple of days, while the MACD lies above its trigger line, but still fractionally below zero. Both indicators support the notion of waiting for the pair to gather more upside speed before getting confident on larger bullish implications.
If the bulls are strong enough to overcome the 134.50 territory, they could shoot for the 138.15 area, which provided strong resistance in December and March, and acted as support in November. That said, if there are no sellers to be found around there, the advance may extend towards the 142.25 territory, marked by the highs of November 21 and 22.
On the downside, the move signaling that the bears have stolen all the bulls’ swords may be a dip below the round number of 130.00. Such a move would confirm the break below the aforementioned upside support line and may initially aim for the low of January 16, at around 127.20. If the bears are not willing to stop there, they could then dive all the way down to the 121.25 area, defined as support by the lows of March 30 and 31, 2022.
To sum up, USDJPY has been in a recovery mode after hitting a short-term upside support line. However, the move signaling that the bulls are in full control may be a decisive move above 134.50.
USDJPY has been in a recovery mode recently, since it hit the upside support line drawn from the low of January 17. However, the pair seems to be struggling to overcome the 100- and 200-day exponential moving averages and thus, the short-term picture may be best considered neutral for now.
The RSI lies above 50 but it has flattened the last couple of days, while the MACD lies above its trigger line, but still fractionally below zero. Both indicators support the notion of waiting for the pair to gather more upside speed before getting confident on larger bullish implications.
If the bulls are strong enough to overcome the 134.50 territory, they could shoot for the 138.15 area, which provided strong resistance in December and March, and acted as support in November. That said, if there are no sellers to be found around there, the advance may extend towards the 142.25 territory, marked by the highs of November 21 and 22.
On the downside, the move signaling that the bears have stolen all the bulls’ swords may be a dip below the round number of 130.00. Such a move would confirm the break below the aforementioned upside support line and may initially aim for the low of January 16, at around 127.20. If the bears are not willing to stop there, they could then dive all the way down to the 121.25 area, defined as support by the lows of March 30 and 31, 2022.
To sum up, USDJPY has been in a recovery mode after hitting a short-term upside support line. However, the move signaling that the bulls are in full control may be a decisive move above 134.50.
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