USDJPY unlocks new 7-month high
2023.06.28 08:00
continues to build its uptrend comfortably above its exponential moving averages (EMAs), closing on Tuesday near a fresh seven-month high of 144.16.
The next obstacle could be the 145.00-145.40 area, with the RSI and the stochastic oscillator suggesting that some congestion could emerge in this neighborhood as the price seems to be trading within overbought waters. Interestingly, the extension of the March resistance line is positioned in the same territory. Therefore, a decisive step higher is expected to boost buying confidence, likely lifting the price up to the 148.80 barrier, unless the 146.60 barricade blocks the way higher beforehand.
Alternatively, a downside reversal could initially retest the nearby support of 143.30 ahead of the 142.00 constraining zone, where the 20-day EMA is heading. Falling lower, the pair could stall around the previous high of 140.90, a break of which could cause an aggressive decline towards the 139.00-138.11 territory. The 50-day EMA and a couple of key trendlines, including the ascending trendline from March lows, are making this region important to watch.
In brief, USDJPY is strengthening its bullish structure, with the bulls expected to slow the pace in the short-term as the price is approaching a caution zone.
