USD/JPY Price Analysis: Bulls ignore overbought RSI to aim for fresh 24-year high near 144.60
- USD/JPY remains firmer around multi-day top, cheers upside break of bullish channel.
- Overbought RSI tests bulls on their way to an ascending resistance line from late April.
- Bears need to conquer 139.40 to retake control.
USD/JPY dribbles around 143.50 after rising to the highest level since 1998 during Wednesday’s Asian session. In doing so, the yen pair cheers an upside break of the monthly bullish channel while ignoring the overbought RSI conditions.
That said, the higher-high and higher-low formation keeps USD/JPY buyers hopeful of refreshing the yearly top.
In doing so, an upward sloping resistance line from late April, near 144.60, gains major attention.
Should the USD/JPY bulls keep rushing towards the north of 144.60, tops marked during June and August of the year 1998, respectively near 146.80 and 147.70, will be in focus.
Meanwhile, pullback moves need validation from the resistance-turned-support line of the stated channel, around 142.60 by the press time.
Following that, the southward trajectory could aim for the 140.00 threshold. However, the USD/JPY bears will need a clear downside break of the 139.40 support confluence, including the stated channel’s lower line and July’s top, to retake control.
Overall, USD/JPY is ready to refresh the multi-year top but the upside room is limited.
USD/JPY: Daily chart
Trend: Limited upside 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.
