USDJPY was positive for a fourth day on Thursday as it moved further above the 200-day moving average. The pair appears to be targeting 122 and hasn’t traded above that handle since the ‘Black Monday’ nosedive on August 24.
The momentum indicators are strong with both RSI and the stochastics in positive territory and trending upwards. The near-term bias is therefore very bullish.
Prices are likely to find resistance at 122 if they continue to push upwards. A break above this level would strengthen the bullish bias. However, the longer-term picture is likely to remain neutral unless prices can rise past the June 5th high of 125.85, which would put USDJPY back on an uptrend.
The top of the Ichimoku cloud is the nearest support at 120.70. A move below this level would shift the bias back to neutral.
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