USDJPY has been in a prolonged uptrend since early March, crossing forcefully above both its 50- and 200-day simple moving averages (SMAs) and generating consecutive fresh highs. Moreover, despite the recent consolidation, the positive tone appears to be strengthening in the near term as the pair has edged higher again to challenge its recent 24-year high of 144.98.
The momentum indicators currently suggest that bullish forces have gained total control. Specifically, the stochastic oscillator is set to post a bullish crossover, while the MACD histogram is currently above zero and its red signal line.
Should buying interest persist, the pair could move higher to test the 24-year peak of 144.98. Jumping above the latter, the price would form fresh multi-year highs, where the August 1998 resistance of 147.70 might come under examination. Even higher, the July 1987 peak of 153.85 could prove to be a tough barrier for the price to overcome.
On the flipside, a negative correction could initially halt at the recent low of 141.50. Should that floor collapse, the bears could aim for the 139.98 resistance territory before the spotlight turns to the 50-day SMA, currently at 137.50. Failing to stop there, any further declines may encounter strong support at the 135.57.
Overall, USDJPY appears to have the necessary momentum to push higher and generate fresh multi-year highs. Nevertheless, the bulls should not rule out the possibility of some retracement, before the latter is accomplished.
