USD/JPY Fails To Improve Bullish Outlook But Still Above 20-Day SMA
2022.10.26 17:21
is losing some momentum after the rally towards the fresh 32-year high of 151.93 in the very near-term.
However, the market is still rebounding on the 20-day simple moving average (SMA), confirming the long-term bullish outlook.
According to the technical indicators, the MACD is heading south below its trigger line in the positive region, while the RSI is pointing downwards after the sharp advance towards the overbought area. In trend indicators, the 20- and 50-day simple moving averages (SMAs) are following the current market action.
The 151.93 resistance could be a trigger point for steeper bullish action if the pair manages to break the line. This is also slightly below the next psychological mark of 152.00 and hence should attract some attention. Higher, resistance could run towards the next round numbers such as 153.00 and 154.00.
However, if the pair reverses to the downside and dive beneath the 20-day SMA, investors could put a stop first at the 145.90 support and then at 145.00. If the price continues to drop, support could next come somewhere near the 50-day SMA, which overlaps with the 143.45 barrier before the focus shifts to the long-term ascending trend line around the 142.00 barrier.
In the short-term picture, the fall from the multi-year high is shifting the bias to neutral. Chances for another bullish move are still rising in the medium- and long-term timeframes as the 200-day SMA keeps rising and the pair holds well above it.
