USDJPY is holding around the fresh 24-year high at 136.70, surpassing successfully the previous highs of 135.57 and endorsing the bullish view.
The MACD is moving further above its red signal line, and the RSI is pointing down after it reached the 70 level. However, the latter could also be an indication that the advance has been exaggerated, and as a result, bearish corrections in the upcoming sessions should not come as a surprise to investors.
In the event that the price moves in the opposite direction, the immediate support could come from the 135.57 barrier ahead of the 20-day simple moving average (SMA) around 132.35, which the bears were unable to break over the previous week. As the price moves lower, attention will shift to the support level at 131.35, though, a violation of the 40-day SMA located at 130.70 would boost speculation that the current bullish phase may transition into a neutral phase in the near future.
Traders will be avidly watching for a break above today’s peak of 136.70 in the alternative scenario, which would result a rally towards the next psychological levels. If that turns out to be the case, the upswing can continue until the price reaches 140.00.
The recent bullish activity has made the wider picture more optimistic as well, and traders may expect additional improvement in the market as the shorter-term SMAs continue to increase their distance above the longer-term SMAs.
