USDJPY has been in a sideways move after peaking at a fresh four-year high of 114.70 on October 20.
The 20- and 40-period simple moving averages (SMAs) and the Ichimoku cloud are confirming the recent neutral bias. However, the stochastic is creating a bullish crossover within the %K and %D lines in the oversold zone, while the MACD oscillator is in the process to surpass its trigger line in the negative region. Both are suggesting that the next move may be to the upside rather to the downside.
In case that the price overcomes the short-term SMAs, the bulls could test the 114.44 resistance ahead of the four-year peak of 114.70.
On the other side, the price could hit the 23.6% Fibonacci retracement level of the up leg from 109.10 to 114.70 at 113.38 ahead of the immediate support area of 113.00-113.19. More downside moves could take the market until the 200-period SMA at 112.80 before touching the 38.2% Fibonacci of 112.56.
To sum up, USDJPY is neutral in the short-term and only a jump above the 114.70 key level may switch the outlook back to a bullish one.
