USD/JPY Price Analysis: Buyers keep the reins at 32-year high near 149.00
- USD/JPY pares the first intraday loss in 10 days around the highest levels since 1990.
- Bullish channel, sustained trading beyond 50-SMA joins upbeat RSI to favor buyers.
- Downside break of weekly ascending trend line, bearish MACD signals keep sellers hopeful with eyes on 148.70.
USD/JPY picks up bids to consolidate Tuesday's losses around 148.90 during mid-Asian session. In doing so, the yen pair seesaws around the multi-year high while snapping a nine-day uptrend.
Even so, the quote’s sustained trading inside the three-day-old bullish channel and the 50-SMA, challenge the bears. On the same line could be the firmer RSI (14).
However, Monday’s U-turn from the previous support line from October 13, now resistance around 149.50, joins the bearish MACD signals to tease sellers.
That said, the USD/JPY pair is likely to grind higher between the stated channel’s support line, at 148.70, and the aforementioned support-turned-resistance near 149.50.
It should be noted that the 150.00 threshold and September’s peak of 145.90 act as extra filters for the pair traders to watch for clear directions.
Should the quote stays firmer past 150.00, the odds of witnessing a run-up towards the August 1990 high near 151.65 and then to the year 1990 peak of 160.20 can’t be ruled out.
Alternatively, multiple tops marked during early September around 145.00 could challenge the USD/JPY bears past 145.90.
USD/JPY: 30-minute chart
Trend: Further 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.
