- USDJPY consolidates near its almost 2-month high
- RSI and MACD lose ground but stay in positive zones
USDJPY has been in a steady advance since its five-month bottom of 140.24 registered in late December, posting consecutive higher highs. However, the rally seems to have taken a breather in the past few four-hour sessions as momentum indicators suggest that bullish pressures are fading.
Should the pair reverse lower, immediate support could be found at 147.44, which is the 61.8% Fibonacci retracement of the 151.89-140.24 downleg. Further retreats could then come to a halt at the 50.0% Fibo of 146.07. Even lower, the 38.2% Fibo of 144.69 may provide downside protection.
Alternatively, if buying pressures re-emerge, the price might revisit its recent peak of 148.78. Conquering this barricade, the bulls could attack the 78.6% Fibo of 149.40. A violation of that zone might pave the way for the October resistance of 150.76.
In brief, USDJPY appears to be in a consolidation mode ahead of the BoJ meeting on Tuesday. Any surprises there are likely to put an end to the rangebound pattern.
