USDJPY bears need validation from 112.50
USDJPY bulls struggle to extend Friday’s bounce towards the immediate hurdle surrounding 50-DMA, near 113.45. The lackluster momentum could also be witnessed through RSI conditions, which in turn favors odds of a pullback to 112.50-45 support confluence comprising the previous support line from March and a three-week-old falling trend line. It’s worth noting that a clear downside break of 112.45 will make the quote vulnerable enough to test the 200-DMA level of 111.60. During the fall, September’s top near 112.00 may offer an intermediate halt.
Alternatively, the USDJPY run-up beyond the 50-DMA level of 113.45 isn’t a green card to the buyers as the 114.00 and multiple highs close to 114.50 will challenge the further advances. Even if the quote rises past 114.50, the yearly high near 115.50 will be a tough nut to crack. To sum up, the pair buyers seem to have tired but the bears need a clear break of 112.50 for fresh entries.
Alternatively, the USDJPY run-up beyond the 50-DMA level of 113.45 isn’t a green card to the buyers as the 114.00 and multiple highs close to 114.50 will challenge the further advances. Even if the quote rises past 114.50, the yearly high near 115.50 will be a tough nut to crack. To sum up, the pair buyers seem to have tired but the bears need a clear break of 112.50 for fresh entries.