USDJPY has been in a prolonged uptrend for almost two years, crossing above its historical resistance levels to post a 32-year high of 151.94 in October. However, the pair has declined moderately from its recent multi-year peak, with the 200-day simple moving average (SMA) currently acting as a strong floor.
The momentum indicators currently suggest that bearish forces are in control. Specifically, the RSI is hovering below its 50-neutral mark, while the stochastic oscillator is descending after posting a bearish cross.
If sellers eventually manage to push the price below the 200-day SMA, initial support could be found at the recent low of 133.62. Piercing through that wall, the bears might aim for the August low of 130.40. Failing to halt there, the May bottom of 126.40 could provide further downside protection.
To the upside, should buying forces intensify, the pair could challenge the recent resistance region of 137.96. Breaking above that zone, the price could then ascend to challenge 142.24 before the September peak of 145.89 comes under examination. An upside violation of the latter may set the stage for the 32-year high of 151.94.
In brief, despite the persistent downside pressures, it seems that USDJPY is unable to breach the crucial 200-day SMA. Hence, if the pair extends its streak of consecutive failed attempts, there could be an upside correction on the cards.
