USDJPY is pointing slightly upwards, touching the 20- and 40-day simple moving averages (SMAs), remaining in a descending channel since March 3. According to the technical indicators, the MACD is approaching the zero line, holding above its trigger line, while the RSI is touching the neutral threshold of 50 in the near term.
A successful increase beyond the 40-day SMA could find immediate resistance at the upper surface of the downward sloping channel at 105.35. If the bulls manage to drive the market above the channel, they could challenge 106.10 ahead of the negatively aligned 200-day SMA at 106.55. Even higher, the 107.07 and the 108.15 resistances could come next.
On the other hand, a decline could retest the eight-month trough of 103.10 before sending the pair towards the lower boundary of the channel around the 41-month low of 101.15.
To conclude, USDJPY has been in a descending mode in the long-term and only an advance above the ten-week high of 109.83 may switch this outlook to bullish.