Technical Analysis – USDJPY struggles to surpass 156.75
USDJPY bounces off uptrend line
But looks neutral in very short-term
Overall outlook is positive
USDJPY is struggling to climb above the 156.75 resistance level but remains beyond the 23.6% Fibonacci retracement level of the upward move from 140.20 to 160.20 at 155.50. As the market trades above the rising trend line, any moves higher could endorse the bullish outlook, testing the 161.8% Fibonacci extension level of the down leg from 151.95 to 140.20 at 159.13. Even higher, the 34-year peak of 160.20 could be closely watched.
The technical oscillators are confirming that the price is failing to move higher as the RSI is moving horizontally above the neutral threshold of 50, while the stochastic is heading towards the overbought territory.
On the other hand, a drop beneath the 23.6% Fibonacci of 155.50, which overlaps with the 20-day simple moving average (SMA) could intensify the selling interest until the uptrend line at 154.80. Falling beneath the diagonal line, traders could overly shift their attention to the downside, meeting the 50-day SMA at 153.55 and the 38.2% Fibonacci of 152.60.
In a nutshell, USDJPY is looking neutral in the very short-term view, but in the bigger outlook is bullish unless there is a plunge beneath the 200-day SMA at 149.20.Related Assets
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