USDJPY Fights August’s Bar Again
2023.08.09 06:56
recouped its latest pullback after finding strong support around the 141.50 level and near the 50-day simple moving average (SMA).
The focus is now again on the 143.35 ceiling as investors are eagerly waiting for the US CPI inflation report to generate some extra volatility on Thursday at 12:30 GMT. There have been no successful attempts to cross the bar this month, but the bulls still have an advantage as long as the RSI is fluctuating above its 50 neutral mark and the MACD remains elevated above its red signal line. Nonetheless, some caution is still required as the RSI seems to be struggling to post new higher highs.
A continuation of the 2023 bullish movement above 144.00 and June’s peak of 145.00 could be another tough job. A decisive extension above that boundary could activate new buying orders, likely prompting a rally towards the 1998 barrier of 147.70 and the resistance line from March, unless the October-November constraining zone of 146.40 blocks the way higher. Further up, the price could next face congestion within the 149.00-150.00 region.
If the 143.35 bar stands firm, forcing a new bearish correction, the 50- and 20-day SMAs could protect the market from a steeper decline towards the support trendline at 139.15. The next destination could be the 138.00 area, where the price rebounded a couple of times last month. Failure to pivot there could open the door for the 200-day SMA at 136.40.
All in all, USDJPY has some bullish fuel in the tank, with traders probably waiting for a clear close above 143.35 to drive the price to June’s highs.
