USDJPY finally snapped the 146.40 bar after a three week-long battle, stretching its uptrend towards the 147.70 constraining area for the first time since November 2022. Notably, this is where the pair peaked in 1998.
Despite Tuesday’s quick bounce in the price, the MACD could not climb above its red signal line. On the other hand, the RSI is hovering comfortably above its 50 neutral mark, while the stochastic oscillator has resumed its positive slope, witnessing persisting buying interest.
The upward-sloping exponential moving averages (EMA) are embracing the positive trend in the market.
If the bulls pierce through the 147.70 barricade, the next challenge could arise near the tentative ascending line from March 2023 at 149.30. The 150.00 psychological mark could come into consideration as well before traders target the 32-year high of 151.93 printed in October 2022.
On the downside, the 146.40 area could turn into a support region if the current weakness in the price continues. The 20-day EMA might also block the way down ahead of the 144.80 level. If the sell-off extends below the 50-day EMA, the next stop could be within the 140.80-141.50 zone, where the ascending trendline from March 2023 is located.
In brief, USDJPY has upgraded its 2023 bullish outlook above a tough resistance, boosting hopes for a continuation higher.