USDJPY increased to an almost two-month high of 108.84 earlier today after the aggressive buying interest on Tuesday’s session, surpassing the flat 200-day simple moving average (SMA) and the upper Bollinger band. Also, the 20- and 40-day SMAs posted a bullish crossover, confirming the recent upside rally in the short-term.
According to the momentum indicators, the RSI is slowing down in the bullish territory, while the MACD is holding above its trigger and zero lines but is failing to continue its upside tendency.
An extension above today’s high could find immediate resistance at the 23.6% Fibonacci retracement level of the up leg from 101.15 to 111.70 at 109.20. Above that, the next hurdle would come from the one-month high of 111.70 before challenging the 112.20 – 112.40 resistance region.
On the other hand, if the price fails to endorse the very short-term bullish bias and retreats, it could meet support at the 200-day SMA, currently at 108.35 and the 108.15 inside swing high from May 19. Breaking these lines, the 38.2% Fibonacci mark of 107.66 and the bullish cross of the 20- and 40-day SMAs at 107.48 could come into the spotlight. More losses could drive the pair to the 50.0% Fibonacci at 106.43, which coincides with the lower Bollinger band.
Briefly, USDJPY is in a slightly neutral-to-positive mode over the last month and a climb above the 23.6% Fibo could confirm a bullish bias in the near term.
