The bulls fight the seven-week hurdle around the 107.00 level

  • USD / JPY remains firm near the highest level since July 2020.
  • The overbought RSI and a bearish MACD tests the pair’s bulls near the top line of an ascending channel.
  • Buyers target July high, 200 SMA adds to downside filters.

USD / JPY remains positive for the second day in a row as it attacks the highest level since July 2020, reached the day before, at the start of the European session on Thursday. However, the upper line of an ascending trending channel from Jan 11 joins the RSI and MACD to test the bulls around 107.10.

As a result, USD / JPY sellers are waiting for a retracement move below the weekly support line, now at 106.80, to open new positions as they target the mid-February high near 106.20.

In the event that the pair falls below 106.20, the February 5 high near 105.75 and the channel support line, near 405.45, will be key.

It is worth mentioning that any further weakness below 105.45 must break the 200-period SMA at 105.09 to end the current uptrend.

On the other hand, the July 20 high of 107.54 and the eight-month high near 108.15 should attract USD / JPY buyers if they manage to cross the immediate hurdle of 107.15.

Overall, USD / JPY remains in an uptrend, but a pullback cannot be ruled out.

USD / JPY 4-hour chart

USDJPY

USD / JPY technical levels

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