• USDJPY holds above uptrend line

• Immediate resistance to look for the 3-month high

• Stochastics and RSI move higher

USDJPY is rising towards the three-month high of 150.87, after finding strong support at the steep ascending trend line and the 149.70 barrier. The RSI indicator is approaching the 70 level, while the stochastic is moving towards the overbought region with strong momentum after the bullish crossover within its %K and %D lines.

A successful climb above the 150.87 barricade could drive the price towards the 151.90 resistance level, registered back on November 13. Even higher, the pair could battle with the next psychological marks such as 152.00 and 153.00 until the next barricade that is coming from 1990 at 160.40.

On the flip side, a fall below the uptrend line could be the start of a bearish correction, meeting 149.70 and 148.80. Even lower, the 50-day simple moving average (SMA) at 146.46 and the 145.90 level which stands slightly above the 200-day SMA could be critical levels to watch for.

Summarizing, USDJPY is looking strongly bullish in the short-term timeframe and only a penetration of the diagonal line and more importantly a drop beneath the 200-day SMA could switch the outlook to bearish.