Technical Analysis – USDJPY tries to rechallenge 3-month high
- USDJPY needs a boost to remain above 61.8% Fibonacci
- Momentum oscillators confirm bullish structure
USDJPY is heading north near the three-month high of 153.90 that was reached during Monday’s session, adding more than 10% since it bounced off the 139.56 support level. The short-term outlook is bullish as long as the market is standing above the 200-day simple moving average (SMA).
Technically, the RSI indicator is crossing above the 70 level, while the stochastic posted a bullish crossover within its %K and %D lines in the overbought region. Both confirm the bullish structure in the short-term outlook.
More upside movements could lead the market to the 155.20 barricade before rallying to the 158.85 resistance level.
Conversely, a break below the 200-day SMA could potentially trigger a bearish retracement, reaching the 50.0% Fibonacci of the decline from 161.94 to 139.56 at 150.75. Slightly lower, the 20-day SMA at 150.23 may prove to be another tough obstacle for the bears. If the pair breaks this line, it may rest near the 38.2% Fibonacci of 148.10.
Overall, USDJPY has been in an uptrend in the short-term view, and a closing session above the 61.8% Fibonacci mark could support this view.
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