USDJPY inched slightly lower to retest Friday’s constraints in the four-hour chart after stretching its gains moderately up to 145.66 – the highest in almost three weeks.
Previously, the pair closed marginally above an ascending triangle, raising confidence that the bullish trend could see further continuation. That could preserve the buying the dip mentality in the near term. Besides, with the MACD and the RSI maintaining a positive trajectory within the bullish area, and the 20-day simple moving average (SMA) avoiding a bearish intersection with the 50-day SMA, upside movements are more likely than negative ones.
If the price sets a strong foothold around the September 22 high of 145.37, the bulls may push again towards the 24-year high of 145.89. A decisive break higher could give the green light for a quick advance towards the 1998 top of 147.71. Beyond the latter, the next obstacle could develop somewhere between 149 and 150.
In the event the price keeps moving lower, the 145.00 – 144.65 zone, which includes the 20- and 50-day SMAs, as well as the ascending trendline drawn from the low of 140.34, could protect buying interest. Failure to bounce here may confirm additional losses to 143.90, where a constraining line from early September is currently positioned. Should that floor collapse as well, the 143.00 support area may next attract attention ahead of the 200-day SMA.
All in all, USDJPY seems to have more room for improvement despite slightly retracing its gains over the past couple of hours. Traders may wait for a successful rebound within the 145.00 – 144.65 region before they engage in more buying.
