The bullish simple moving averages (SMAs) are defending the broader positive structure.
Currently, the Ichimoku lines are not exhibiting a convincing directional force, while the short-term oscillators suggest positive momentum is strengthening. The MACD, in the positive region, has pushed back above its red trigger line, while the RSI is improving in bullish territory after vibrating around the 50 threshold. The stochastic oscillator has turned positive after the %K line rocketed higher, promoting upside price action.
In the positive scenario, initial hindrance to the resuscitation of the uptrend could come from the 116.00-116.34 resistance band, the latter being the five-year high. Overstepping this barrier that has been curbing advances for more than two-months, the pair could target the 116.87 and the 117.53 highs from the first half of January 2017. If the bulls maintain command, the price may then pursue the 118.17-118.66 resistance section that was moulded by the rally peak in mid-December 2016 and the early January 2017 high.
Alternatively, if positive powers fade around the 116.00 level, the Ichimoku lines at 115.24 could delay the test of a tough support zone from the 50-day SMA at 115.00 until the cloud’s floor at 114.43. If the price slides even lower, the 114.15 barrier and a potential supportive trend line pulled from the 102.58 bottom may try to impede a deeper retracement from evolving. However, if selling pressures remain dominant, the 113.13-113.48 boundary could come under attack.
Summarizing, USDJPY is exhibiting a neutral-to-bullish bearing above the SMAs and the 114.15 low. A break above the 5-year high would revive the broader uptrend. Yet, the price would need to sink below the support border of 112.00-112.53 to spark worries about the bigger positive structure.
Technical Analysis: USD/JPY Nears 116 Mark As Bullish Pressures Increase
Technical Analysis: USD/JPY Nears 116 Mark As Bullish Pressures Increase
USDJPY is creeping higher toward the 116.00 handle and the five-year high of 116.34 after recently bouncing off the Ichimoku cloud.
