USDJPY is advancing above the 20- and 40-day simple moving averages (SMAs) after a month but the outlook is still neutral. The MACD oscillator is holding above its trigger and zero lines, but the momentum is very weak, while the RSI is flattening above the neutral threshold of 50, both mirroring the sideways move in the short-term.
If the price successfully overcomes the 114.25 immediate resistance, the next stop could come from the almost five-year high of 115.50. Rising above this level, the 118.60 barrier, registered in January 2017 may pause the upward move.
On the flip side, a decline below the near-term SMAs could take the bears towards the 112.70 support and the inside swing high from September 30 at 112.07. Slipping below this level, the long-term ascending trend line may halt the bearish move at 111.60, while even lower the 200-day SMA around 110.80 is acting as strong support.
All in all, any moves beneath the 200-day SMA could switch the current outlook to bearish, though a climb beyond the five-year high could endorse the long-term bullish trend.
