USDJPY closed above the 114 yen level yesterday, moving further off the 15- month low of 110.96 reached last week. The pair has risen for a third straight day today to hit a high of 114.86 . However more signals are needed in order to confirm that there is a shift in the recent bearish bias. MACD is still below zero and trending down, which is a bearish signal. RSI is also still in bearish territory below 50 but it has moved off oversold levels, which could explain the recent bounce in prices. Perhaps the corrective move could end if prices fail to breach the 115.00 level, which is now a resistance level.
For now the alignment of the moving averages show that a substantial move higher in USDJPY is unlikely. The 50-day moving average has crossed below both the 100 and 200-day moving averages and is sloping downwards, giving a strong bearish signal. The near-term outlook remains bearish.
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