USDJPY is currently propelling over the controlling 50-day simple moving average (SMA) at 105.78, coupled with the cloud’s lower band, in attempts to shift the stagnant bias. The Ichimoku lines provide marginal backing to benefit the mostly sluggish price, while the gliding SMAs continue to preserve a mostly passive picture.
Nonetheless, the short-term oscillators suggest that positive momentum is strengthening. The MACD, in the negative region, is above its red trigger line and is approaching the zero mark, while the upward sloping RSI is rising from its neutral point. Yet, the negative tone of the SMAs cannot be ruled out, as they may maintain a mostly motionless market.
If selling interest strengthens, initial support may arise from the Ichimoku lines around 105.35 and the 105.19 level, that being the 61.8% Fibonacci retracement of the up leg from 101.17 to 111.71. A slight dip down may then encounter the neighbouring 104.93 low, before the foundation of 104.00 to 104.18 draws attention. Steeper declines past the 6-month trough may hit the 76.4% Fibo of 103.66, before the 103.09 critical border draws traders’ eyes.
Gaining ground may see early limitations develop from the upper boundary of the cloud around 106.19. Overcoming this obstacle, a resistance section from the 50.0% Fibo of 106.43 until the 106.54 high, which encapsulates the 100-day SMA, may attempt to halt the climb. Should buyers successfully step over this tough border, the price may meet the 107.00 handle before targeting the 200-day SMA at 107.43. Additional advances may then turn to the 38.2% Fibo of 107.68 and even the 108.16 peak.
In brief, USDJPY sustains a neutral demeanour in the short-term timeframe despite efforts to improve. A break above 107.00 or below 104.00 may propose the next price development.
