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USDJPY edges higher again today, back above 150.15
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Increased pressure on Japanese authorities to intervene
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Mixed momentum indicators complicate the outlook
USDJPY is higher again today after bouncing off the lower boundary of the ascending trending channel that has been in place since mid-March. The announcements at last week’s Bank of Japan meeting have done little to dent the bullish sentiment in the market with USDJPY bulls appearing relatively calm at the prospect of an intervention by the Japanese authorities.
In the meantime, the momentum indicators remain mixed. The Average Directional Movement Index (ADX) is stuck below its 25-threshold and thus signals a trendless market. On the flip side, the RSI is edging higher, above its midpoint. Crucially, the stochastic oscillator is gradually moving lower, a tad above its midpoint and thus reflecting a high degree of indecisiveness in the market.
Should the bulls remain confident, they could try to confidently keep USDJPY above the 150.15 level. They could then have the chance to record a new 2023 high and gradually test the resistance set by the October 21, 2022 high at 151.94.
On the flip side, USDJPY bears are probably keen on retesting the lower boundary of the trending channel. If they are successful this time around, they could have a go at pushing USDJPY below the busy 147.71-148.84 area. This is populated by the August 11, 1998 high and the 50-day simple moving average (SMA). Even lower, the path appears to be clear until the 144.99-146.65 area, a tad above the March 24, 2023 ascending trendline.
To sum up, USDJPY bulls remain in control of the market and are potentially ready to set course towards 151.94, ignoring the intervention threat and the stochastic oscillator edging lower.
