USDJPY has been in a prolonged uptrend for almost two years, crossing above its historical resistance levels to reach consecutive multi-year highs. However, the pair has been trading sideways in the last few daily sessions as its rally appears to be running out of juice.
The short-term oscillators currently suggest that bullish forces are waning but still retain control. Specifically, the RSI is pointing downwards slightly above its 50-neutral mark, while the MACD histogram is softening below its red signal line in the positive territory.
To the upside, bullish actions could initially come to a halt at the recent resistance of 148.84. A break above the latter might set the stage for the 32-year high of 151.94. Failing to halt there, the price could ascend to form fresh multi year highs, where the July 1987 peak of 153.85 may prove to be the next barrier for the price to overcome.
Alternatively, if sellers emerge and regain control, the pair could descend towards its latest support of 145.10. Should that floor collapse, the bears might aim for 143.51 before the 139.38 barrier comes under examination. Any further declines could then cease at 135.57, which has acted both as resistance and support in the previous months.
Overall, even though bullish pressures appear to be subsiding, USDJPY’s uptrend remains intact. Nevertheless, a dive beneath the 145.10 floor could be the starting point of a moderate downside correction.
