- USDJPY tries to switch medium-term outlook to bullish
- Prices hold within Fibonacci levels
- Technical signals are positive
USDJPY is looking to resume its bullish trend, having softly pivoted near the 50.0% Fibonacci retracement level of the down leg from 151.90 to 140.20 at 146.07.
To attract new buyers, the bulls will have to surpass the aforementioned resistance of 146.07 and move beyond the 146.60 barrier. In this case, the price could pick up steam towards the important resistance at 148.50. Another successful battle there could see the price jumping towards the 149.70 line, taken from the highs at the end of November.
Nevertheless, a downside correction could still be possible in the coming sessions. If the pair slumps below the 38.2% Fibonacci of 144.70 ahead of the 200-day simple moving average (SMA) at 143.70, it could stabilize near the 143.40 support, which coincides with the 20-day SMA. Otherwise, the sell-off could expand towards the 23.6% Fibonacci of 143.00. However, only a clear close below 140.90 would disappoint medium-term traders.
The technical oscillators seem to be able to convince traders of the bullish scenario. The RSI is pointing upwards in the bullish region, while the MACD is standing above its trigger line and is ready for a cross above the zero level.
Summing up, USDJPY has not eliminated downside risks yet, despite marking a positive start to the week. To boost buying confidence, the pair will need to crawl above the 61.8% Fibonacci of 147.40.
