- USDJPY marks new higher highs
- The current state may be close to overbought territory
- Bulls need a durable move above 149.00
USDJPY managed to keep a footing within a short-term ascending channel and softly rise to a one-year high of 149.17 on Tuesday.
That said, the price momentum remains weak and the RSI and the stochastic oscillator are already flirting with overbought levels, suggesting that buyers might soon exercise caution in the market.
Nevertheless, if the price holds above the channel’s support trendline at 148.90, there is potential for an acceleration towards the tentative resistance line seen at 150.37. Snapping that wall, the bulls could head for the 2022 top of 151.93, a break of which could provide direct access to the channel’s upper band at 153.80.
Alternatively, a close below the channel could instantly see a test of the 20-day simple moving average (SMA) near 147.70. If the bears breach that floor too, they may next target the area between the 50-day SMA and the 144.55 restricted zone. Then a pause could occur around the 143.30 barrier before the support trendline drawn from March comes under examination at 142.30.
In summary, USDJPY might be on track for another bullish correction, but traders could stay patient until the pair closes decisively above 149.00.
