USDJPY is ticking higher, approaching the 105.00 psychological number in the 4-hour chart. The price rebounded off the 104.33 support level and surpassed the 20-period simple moving average (SMA), suggesting a possible bullish correction. The technical indicators are confirming this view with the RSI touching the 50 level and the MACD heading north in the bearish zone.
If the price continues the upside move, immediate resistance would come from the 105.02 barrier, which stands around the 40-period SMA. Even higher, the buying interest could send the market until the lower surface of the Ichimoku cloud at 105.32 before hitting the 105.64 level, taken from the latest high. Above that, 106.10 could be a crucial level for investors.
On the other hand, a drop beneath the 20-period SMA again could drive the price until the 104.33 support and the 104.00 handle.
To sum up, USDJPY has been in a slightly bullish retracement over the last five days, however, in the bigger picture it looks to be bearish.
