Technical Analysis – USDJPY pauses rebound at 50-SMA
May 8, 2023 1:27 pm
USDJPY had been rebounding strongly from its March bottom, generating a clear structure of higher highs and higher lows. Although the pair experienced a moderate pullback after its advance came to a halt, it slowly regained ground in the last few four-hour sessions to meet resistance at the 50-period simple moving average (SMA).
The short-term oscillators currently suggest that bullish forces are intensifying. Specifically, the MACD jumped above its red signal line but it is remaining in the negative territory, while the RSI crossed above its 50-neutral mark.
Should the price extend its advance, the recent resistance of 135.29, which lies very close to the 50-period SMA, could prove to be the first barricade for buyers to clear. Violating that zone, the pair may ascend towards 135.84, which is the 23.6% Fibo of the 129.63-137.76 uptrend. Failing to halt there, the bulls might then target the April high of 137.76.
To the downside, bearish actions could send the price to challenge the 38.2% Fibo of 134.65. If that obstacle fails, the spotlight may turn towards the 50.0% Fibo of 133.70. Any further declines could then cease at the 61.8% Fibo of 132.74 before the April support of 132.00 appears on the radar.
In brief, USDJPY seems ready to extend its recent rebound following a sharp pullback from the April highs. For that scenario to materialise, the pair must initially jump above its 50-period SMA.
USDJPY had been rebounding strongly from its March bottom, generating a clear structure of higher highs and higher lows. Although the pair experienced a moderate pullback after its advance came to a halt, it slowly regained ground in the last few four-hour sessions to meet resistance at the 50-period simple moving average (SMA).
The short-term oscillators currently suggest that bullish forces are intensifying. Specifically, the MACD jumped above its red signal line but it is remaining in the negative territory, while the RSI crossed above its 50-neutral mark.
Should the price extend its advance, the recent resistance of 135.29, which lies very close to the 50-period SMA, could prove to be the first barricade for buyers to clear. Violating that zone, the pair may ascend towards 135.84, which is the 23.6% Fibo of the 129.63-137.76 uptrend. Failing to halt there, the bulls might then target the April high of 137.76.
To the downside, bearish actions could send the price to challenge the 38.2% Fibo of 134.65. If that obstacle fails, the spotlight may turn towards the 50.0% Fibo of 133.70. Any further declines could then cease at the 61.8% Fibo of 132.74 before the April support of 132.00 appears on the radar.
In brief, USDJPY seems ready to extend its recent rebound following a sharp pullback from the April highs. For that scenario to materialise, the pair must initially jump above its 50-period SMA.
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