USD/JPY Price Analysis: Bulls battle seven-week-old hurdle around 107.00
- USD/JPY stays firm near the highest since July 2020.
- Overbought RSI, bearish MACD probe buyers near the upper line of an ascending trend channel.
- Buyers aim for July top, 200-bar SMA adds to the downside filters.
USD/JPY remains positive for the second consecutive day while attacking the July 2020 peak, market the previous day, during early Thursday. However, the upper line of a rising trend channel formation since January 11 joins RSI and MACD to probe the bulls around 107.087, up 0.10% intraday.
As a result, USD/JPY sellers are waiting for a pullback move below the weekly support line, at 106.80 now, to take a risky bet while targeting the mid-February top near 106.20.
In a case where the quote drops below 106.20, February 05 high near 105.75 and the stated channel’s support line near 105.45 will be the key.
It’s worth mentioning that any further weakness past-105.45 needs to break the 200-bar SMA level of 105.09 before reversing the current uptrend.
On the flip side, the July 20 peak of 107.54 and the eight-month high near 108.15 should lure the USD/JPY buyers if they manage to cross the 107.15 immediate hurdle.
Overall, USD/JPY remains in an uptrend but a pullback can’t be ruled out.
USD/JPY four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
