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USDJPY consolidates within narrow range
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Stochastics and RSI still head north
USDJPY is moving sideways within the multi-year high of 161.94 and the 160.20 support level, with the pressure remaining towards the upside according to the technical oscillators. The stochastics are moving higher after the bullish cross within its %K and %D lines, while the RSI is flirting with the 70 level.
Further advances could meet immediate resistance at the 38-year peak of 161.94 ahead of the next psychological number of 163.00.
Alternatively, a fall beneath the 160.20 mark and the 20-day simple moving average (SMA) at 159.87 could take the market towards the long-term uptrend line and the 157.70 support, which also overlaps with the 50-day SMA. These levels could act as a significant turning point in the market; however, a drop lower could switch the short-term bias to negative.
All in all, USDJPY has been in an acceleration since the end of 2023 and only a move below the 200-day SMA could change the current outlook.
