Technical Analysis – USDJPY remains supported
- USDJPY holds within bullish channel
- Sellers wait below 153.00
USDJPY found immediate support at the lower band of a bullish channel and returned to the 154.00 area on Monday, raising hopes that Friday’s notable pullback from a four-month high of 156.73 could be easily reversed.
The technical indicators provide no clear direction, with the RSI moving sideways in the bullish area, and the RSI and the MACD decelerating.
Still, as long as the floor near 154.00 holds, the focus may remain on the upside. A step above the nearby barrier of 155.40 could see another test near the 157.00-157.70 resistance zone, while a close above 158.50-159.00 could clear the way toward the channel’s upper band and the 160.00 psychological mark.
On the downside, the 153.00-153.40 territory, which includes the 61.8% Fibonacci number, the 20-day exponential moving average (EMA) and the ascending line from January 2023, could test selling appetite. If that floor cracks, the pair could dive toward its 50- and 200-day EMAs seen within the 150.25-150.85 region. Additional losses from there may stretch to the 38.2% Fibonacci of 148.11.
In brief, USDJPY could keep buying interest intact as long as the bullish channel continues to balance downside pressures above 154.00.
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