USDJPY experienced a vast sell-off after the price peaked at the 4½-year high of 115.51. Since then, the pair has been moving without a clear direction, but the recent cross above the 50-day simple moving average (SMA) suggests that bullish forces have gained the upper hand.
This near-term positive momentum is also reinforced by the momentum indicators. The MACD is currently found above both zero and its red signal line, while the stochastic oscillator is pointing upwards in the overbought area.
If buying pressure intensifies further, initial resistance might be encountered at the 200-day SMA, currently located at 113.89. Moving past this obstacle, the price may move towards 114.30 or higher to challenge the 114.46 hurdle. If the price continues its ascent, the focus could turn to the 114.95 barrier.
On the flip side, should the positive bias fade and the price reverses downwards, the 113.55 level that overlaps with the 50-day SMA could act as the initial support barricade. If violated, that could send the price to test the 113.30 level. Failing to halt there, the market might tackle the 113.06 obstacle.
Overall, the pair has been holding a neutral tone in recent sessions. A clear break above the 200-day SMA could ignite further bullish actions and alter the short-term picture to positive, whereas a dip below 112.52 would signal the resumption of the recent dive.
