USDJPY has been gaining ground in the short-term timeframe, holding above the one-month uptrend line, despite today’s pullback so far. Though, the market is still moving beneath the medium-term ascending trend line and awaits a strong boost to post a higher high.
Technically, the MACD is holding above its trigger and zero lines; however, the stochastic oscillator is weakening its momentum entering the overbought region, suggesting that the next move may be to the downside.
Any moves beyond the 24-year high of 139.35 could take the market even higher, meeting the next psychological level of 140.00. The uptrend line drawn from the 114.64 support seems to be acting as resistance around 141.00.
On the other hand, violating the 137.40 support could see losses extending towards the 20- and 40-day SMAs, which are holding near the 135.55 barrier. Even lower, the bears could take the price below the short-term ascending trend line around the 131.35-130.37 region.
In the medium-term picture, USDJPY could resume an upside trend above the 24-year high of 139.35. It is also worth noting that the short-term SMAs keep distancing themselves above the 200-day SMA, raising optimism for a bull market.
