USDJPY has been in a neutral mode after the rebound on the 18-week low of 104.15 and is trading marginally below the 20- and 40-day simple moving averages (SMAs) and the 106.00 number. The RSI indicator is moving horizontally near the 50 area, while the MACD oscillator is gaining some ground with weak momentum in the negative territory. Both are endorsing the lacking direction in the short-term.
In case of a run to the upside, immediate resistance would come from the 38.2% Fibonacci retracement level of the down leg from 111.70 – 104.15 at 107.07. Clearing this line, the 50.0% Fibonacci of 107.92 and the 200-day SMA could halt bullish actions ahead of the 108.15 barrier. Moving higher, the 61.8% Fibonacci of 108.83 could attract buyers’ attention.
On the other hand, a break below the 23.6% Fibonacci of 105.95 could take the market to the 105.05 support before flirting with the 18-week low of 104.15. Breaching this crucial level, the market could open the way for the 103.10 hurdle.
In the bigger picture, USDJPY has been in a negative mode since March 24, however, in the short-term view, it has been moving sideways over the last month.
