USDJPY came close to breaking the 20-day simple moving average (SMA) and the 115.00 round number on Tuesday, remaining above the Ichimoku cloud and within the upward sloping channel in the medium-term.
According to the RSI, the market could maintain positive momentum in the short-term as the indicator is positively sloped above its neutral threshold of 50, while the %K line of the Stochastics suggests that the market is heading north after the bullish cross with the %D line.
On the upside, the price could attempt to overcome the red Tenkan-sen line at 115.40, which if successfully broken, could open the door for the five-year high of 116.36. Should traders continue to buy the pair above that peak, bringing the long-term uptrend back into play, resistance could then run towards the 118.60 mark, registered in January 2017.
A reversal to the downside; however, could find immediate support at the lower surface of the Ichimoku cloud at 114.40, while slightly lower the 114.15 key-level could also come into view. If the latter fails to halt bearish movements, the next target could be the 113.40 support, which is holding below the ascending channel.
Turning to the medium-term trading, the outlook is positive over the past four months and only a decisive close below the 200-day SMA at 112.20 may change this outlook.
