USDJPY has increased to a fresh nine-month high of 108.64 on Friday, endorsing the upside tendency. The simple moving averages (SMAs) are following the price action as well as the Ichimoku lines. The Relative Strength Index (RSI) is holding in the overbought territory, suggesting an overstretched market, while the stochastic oscillator is edging north towards the 80 level.
Any advances above the multi-month high of 108.64 could take the market until the next crucial resistance around 109.85, taken from the high in June 2020.
On the other side, the price could meet the 20-period SMA at 107.70 ahead of the 23.6% Fibonacci retracement level of the upward wave from 102.60 to 108.64 at 107.20, which overlaps with the 40-period SMA. Below that, the 106.65 support could attract attention before slipping to the 38.2% Fibonacci of 106.30.
Overall, USDJPY has been in a strong upside movement since January and only a close below the 200-period SMA may change this outlook to neutral.
