USD/JPY technical analysis: Climb pauses but compass aims northwards

USDJPY appears to be stabilizing its footing on the red Tenkan-sen line, currently around 108.82, getting ready for a new thrust higher. The rising 50- and 100-day simple moving averages (SMAs) and the recent bullish crossover of the 200-day SMA by the 50-day one are together endorsing an extension of the price rally from the beginning of the year. The Ichimoku lines are reflecting robust positive sentiment as the red Tenkan-sen line is soaring above its blue Kijun-sen line.

The short-term oscillators are mirroring the pause in the rally but seem to be favouring the upside. The MACD is far above the zero mark and is persisting above its red trigger line, while the RSI is creeping sideways in the overbought territory, and at this time is pointing upwards.

Maintaining the current trajectory, immediate upside constraints may develop from the 109.23-109.36 zone, the latter being the 9-month high. However, stepping over this border, the bulls could then face heavy resistance from the nearby section of 109.66-109.84. Should this bullish momentum endure, enabling buyers to triumph over the 109.84 peak, this could reinforce a belief in the positive shift. This outcome could have the bulls lift the price towards the barrier of 110.75 in attempts to shoot for the vital peak of 111.71.

Otherwise, if sellers resurface and steer the price beneath the red Tenkan-sen line at 108.82, next support could arise from the region of 108.16-108.33. Securing a close underneath this boundary, the pair may examine the 107.53 obstacle, the tentative uptrend line - pulled from 102.58 - and the cloud. Should these barriers fail to dismiss the decline, the price may then target the support band of 106.94-107.04.

Summarizing, in the short-term timeframe USDJPY is exhibiting a somewhat cemented bullish bias above the 108.16-108.33 support boundary.