Technical Analysis – USDJPY shows some improvement within channel
May 15, 2023 12:29 pm
USDJPY continues to rise above the short-term simple moving averages (SMAs) remaining inside a bullish channel over the past two months, stretching its upward pattern towards the next key levels such as 136.66 and the 200-day SMA at 137.05. According to the stochastic, positive momentum could push for further gains in the short-term as the indicator picks up steam. The RSI is also advancing above the neutral threshold of 50.
More advances could stall near the 38.2% Fibonacci retracement level of the downward wave from 151.90 to 128.00 at 136.66 ahead of the 200-day SMA at 137.05. Also, the double top of 137.90 may halt bullish actions but any increases higher could change the outlook to a stronger bullish one.
A reversal to the downside could pause at the bottom of the channel and the 50-day SMA at 133.60 before meeting the 23.6% Fibonacci of 132.95. Further below, the ascending line could also provide support around 132.40, as the index was unable to fall significantly under that line in the last four months and any violation at this point could potentially trigger further sell-off in the market, probably leading the price down to the 129.80-130.60 area.
Regarding the medium-term picture, the bullish outlook has built up as the pair continues to move higher while a dive below the uptrend line could shift the sentiment into a bearish.
USDJPY continues to rise above the short-term simple moving averages (SMAs) remaining inside a bullish channel over the past two months, stretching its upward pattern towards the next key levels such as 136.66 and the 200-day SMA at 137.05. According to the stochastic, positive momentum could push for further gains in the short-term as the indicator picks up steam. The RSI is also advancing above the neutral threshold of 50.
More advances could stall near the 38.2% Fibonacci retracement level of the downward wave from 151.90 to 128.00 at 136.66 ahead of the 200-day SMA at 137.05. Also, the double top of 137.90 may halt bullish actions but any increases higher could change the outlook to a stronger bullish one.
A reversal to the downside could pause at the bottom of the channel and the 50-day SMA at 133.60 before meeting the 23.6% Fibonacci of 132.95. Further below, the ascending line could also provide support around 132.40, as the index was unable to fall significantly under that line in the last four months and any violation at this point could potentially trigger further sell-off in the market, probably leading the price down to the 129.80-130.60 area.
Regarding the medium-term picture, the bullish outlook has built up as the pair continues to move higher while a dive below the uptrend line could shift the sentiment into a bearish.
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