USDJPY has been ticking higher over the last couple of days, though in the five-month picture it is still in a descending movement. Currently, the price is flirting with the 40-day simple moving average (SMA), while the RSI is hovering around its 50 level. Also, the MACD is moving higher in the negative territory, indicating an upside retracement in the short-term.
If the price jumps above the 40-day SMA, immediate resistance could come from the 38.2% Fibonacci of the down leg from 111.70 to 104.15 at 107.07. Clearing this hurdle, next resistance could be faced around the 50.0% Fibonacci of 107.92, which coincides with the 200-day SMA, before the 108.15 barrier comes into view.
On the other hand, a drop below the 23.6% Fibonacci of 105.95 could strengthen bearish sentiment and take the market towards the 105.05 support. Underneath, the 18-week low of 104.15 could come into the spotlight again.
Overall, USDJPY is in a bearish mode over the past five-months and only a daily close above the 61.8% Fibonacci of 108.83 may change this outlook to neutral.
