USDJPY managed to surpass the key upside barrier of 118 yen, hence driving the pair up to fresh one-week high. Upside momentum picked-up pace over the last hours and USDJPY is now attempting to retake the 118 handle.
The next immediate hurdle on the upside is 118.37, the January 13 high. A break above this would open the way towards the key 120.00 level. To the downside, this week’s low of 115.96 is important support.
Technical indicators on the daily charts, such as RSI and stochastics, are pointing up and rising, and supporting a price rise. The pair also closed above the 10-day moving average and is holding above it. Prices also crossed above the tenkan-sen line.
But looking at the bigger picture, the downtrend from 123.55 from November, to the low of 115.96 this week appears to just be consolidating. A break above 120.00 is needed to shift the downtrend bias.
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