USDJPY is trying to create an ascending channel in the short-term, with strong resistance near the 127.56 barrier. The latest higher lows are showing some improvement and the moving averages are turning higher as well. The MACD oscillator is strengthening its positive momentum, while the RSI is surpassing above the neutral threshold of 50.
In case of an upward attempt, USDJPY would likely meet resistance at the 127.56 barrier, before posting a higher high at 128.30 and at the 200-period SMA currently at 128.50. A break above this line would ease downside pressure, while a climb above 128.90 would help the short-term bias to a bullish one.
Immediate support is being provided by the uptrend line near 127.00. However, should prices dip lower again, the next support would likely come from the 126.55 level. Further decreases would open the way for the 126.35 obstacle.
In the medium term, the bearish outlook remains intact and only a jump beyond the 200-period SMA may change the outlook to positive.
