USDJPY found support at the 135.55 barrier, which holds near the medium-term ascending trend line but is still moving with weak momentum around the 20-day simple moving average (SMA).
Trend signals remain daunting as the price continues to trade near the Ichimoku lines, which proved to be a tough resistance area to overcome over the last couple of months. As regards the market momentum, some optimism seems to be building over an upside move as the RSI has paused its downtrend around the 50 level and the Stochastics have created a bullish crossover within its %K and %D lines.
In the event the bulls hold control, the 24-year high of 139.35 will come first into view. A violation at this point may see another challenging battle around the 140.00 psychological level. If buyers claim that zone this time, the 146.83 resistance, taken from the peak in June 1998, could immediately add some downside pressure.
Should the bears take the upper hand, driving the price below the uptrend line and the 135.55-134.25 support zone, the spotlight will shift to the 131.35 barrier, where any step lower will put the pair in a bearish mode in the medium-term picture. The long-term outlook will also face a deterioration if the decline extends below 125.10-126.30.
In brief, although USDJPY continues to face weak trend signals, the odds for an upturn seem to be growing, with the confirmation expected to come above the 24-year high.
