USDJPY is moving sideways below the 24-year high of 144.98 but remains well above the bullish crossover within the 20- and 50-day simple moving averages (SMAs) and the long-term uptrend line.
Technically, the stochastic oscillator is heading north after the positive cross of the %K and %D lines; however, the MACD oscillator is holding beneath its trigger line in the bullish region.
Immediate resistance to further gains would likely come from the multi-year high of 144.98 that is proved to be a potentially difficult hurdle for the pair to overcome. If there is a successful break above this area, further resistance could be met around the 146.83-147.70, which was a congested region during 1998.
If, however, the strong upside momentum was to lose steam and the pair reversed lower, support would initially come from the 20-day SMA at 141.50. Slipping below this level could take prices towards the 139.35 barrier ahead of the 50-day SMA at 137.90. Failure to hold above the 137.40 support and the uptrend line would switch the focus back to the downside and attention would increasingly turn to the 135.55 barrier.
In the short-term picture, the price is currently moving sideways and is likely to stay as long as prices remains close to the 24-year peak. Any advances above this hurdle would endorse the bullish outlook.
