USDJPY has experienced a rebound from the 140.90 level after previously penetrating the 200-day Simple Moving Average (SMA). This rebound came after recovering some losses incurred the previous week. Key momentum indicators suggest potential gains in the near term. USDJPY is currently in a near-term negative mode following the pullback from 151.90. However, short-term momentum appears to be strengthening, suggesting a potential bullish breakout. The MACD's strengthening in negative territory favors this scenario, although the overall outlook remains uncertain.
Technical Analysis:
- Moving Averages: USDJPY recently broke above the 200-day SMA but encountered strong resistance at the 200-day Exponential Moving Average (EMA).
- RSI Indicator: The RSI indicator rebounded from the 30 level, indicating a potential upward trajectory. However, it appears to be flattening.
- MACD Indicator: The MACD is moving higher after briefly slipping below its trigger line.
Potential Scenarios:
- Bullish Outlook: If bullish momentum persists, USDJPY could aim for the 20-day SMA at 146.15 and then the 146.60 resistance level. Breaking above this area may lead to a challenge of the 148.50 resistance, coinciding with the 50-day SMA. Further gains could open the path towards 149.70.
- Bearish Scenario: In case bearish forces attempt to push the price lower, initial support may be found at the recent support lines of the 200-day EMA at 143.80, followed by the 200-day SMA at 142.60. A break below these levels could drive the price towards the 140.90 support level.