USDJPY has been trading within a symmetrical triangle on a long-term basis since May 2015 and has sunk more than 3.5% during this year so far. The pair has established and traded within a sideways range between the upper boundary of 108.80 and the lower boundary of 114.70, roughly around the 111.00 key level, over the past nine months. In September, the pair posted a bearish weekly candlestick below the aforementioned range but failed to extend its decline and returned back within the 108.10 – 114.70 range.
The price tested several times the 50 and 200 simple moving averages (SMAs) in the weekly timeframe and is currently hovering around them with low volatility. As it stands, if the bulls are strong enough to push the price above the upper bound of the sideways range, dollar/yen could extend its gains towards the next immediate resistance level at 115.50, or moreover, until the 118.60 barrier. On the downside, if the bears take control, the pair may decline towards the 107.30 – 108.10 significant support zone. A break below this trading range could drive USDJPY towards the 105.50 critical barrier. Remaining in the same timeframe, the oscillators do not paint a clear picture since they lie near their neutral levels with weakening momentum.
Having a look in the daily timeframe, the signals are virtually the same with the weekly chart as the MACD and the RSI are moving near their neutral levels, slightly above the zero line and close to the 50 level respectively.
