USDJPY has been in a prolonged uptrend since early March, crossing above its historical resistance levels and generating consecutive multi-year highs. Moreover, despite the recent consolidation, the positive tone appears to be strengthening in the near term as the pair has edged higher today to a fresh 24-year high of 146.38.
The short-term oscillators currently indicate that bullish forces are intensifying. Specifically, the RSI is sloping upwards towards its 70-oversold area, while the MACD histogram is strengthening in the positive region, approaching its red signal line.
Should buying pressures persist, the pair could move higher to form fresh multi-year highs, where the August 1998 resistance of 147.70 might curb further advances. Conquering this barricade, the bulls may target the 150.00 psychological mark. 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 come to a halt at the recent support region of 143.51. Should that floor collapse, the price could descend towards the 139.98 resistance territory, which might now act as support. A break below the latter could turn the spotlight to 135.57 before the August low of 130.40 appears on the radar.
Overall, USDJPY seems to have the necessary momentum to push higher and challenge its historical highs. Nevertheless, the bulls should not rule out the possibility of some retracement before the latter is accomplished as an intervention by the BoJ remains on the cards.
