USD/JPY Appears Overbought; Neutral-To-Negative Bias
XM Group | Jul 06, 2022 07:13AM ET
The RSI indicator is pointing down in the positive region, while the MACD oscillator is holding below its trigger line above the zero level, indicating a weak momentum. In trend indicators, the 20-day simple moving average (SMA) is turning lower, while the 40-day SMA is still following the medium-term uptrend line.
Further declines may meet support around the lower boundary of the channel, before tumbling to the ascending trend line around 133.00 and the 40-day SMA at 132.10. Not far below, support could occur around the 131.35 barrier ahead of the 126.30 level.
On the upside, resistance could come from the 24-year high of 137.05 before rallying towards the 140.00 psychological level. Higher still, the 146.83 resistance, taken from August 1998 would increasingly come into scope.
The medium-term picture continues to look predominantly bullish, with trading activity taking place above the short-term SMAs and the 200-day SMA. However, the short-term outlook is appearing overstretched.
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