USDJPY has been plunging since early January when it recorded a five-year high of 116.33. Despite posting a moderate rebound after the pair found its feet at the 113.47 level, the price dipped again as positive momentum evaporated.
The decline is likely to resume as short-term oscillators indicate a bearish near-term bias. The MACD histogram is found beneath both zero and red signal line, while the RSI is flatlining in the negative territory. Moreover, the 50-period simple moving average (SMA) crossed beneath the 200-period SMA, endorsing the pair’s negative short-term outlook.
Should the negative momentum intensify further, the price might drop towards the recent low of 113.60. Breaching this barricade, the bears could then target the 113.47 region before the spotlight turns to 113.28. If downward pressure persists, the 113.13 hurdle could appear on the radar.
On the flipside, bullish actions may encounter initial resistance at the recent high of 114.03. Conquering this barricade, the price could ascend towards 114.22 or higher to test the 114.55 obstacle. Piercing through these resistance points, buyers might then aim for the 114.78 level.
Overall, the eventual resumption of the downside trajectory remains the most likely scenario for USDJPY. However, a profound break above 115.05 could alter its short-term picture back to positive.
