USD/JPY bullish with a range bound bias, possible retest to the 147.870 level
The current trading price of USD/JPY stands at 147.060, and it’s noteworthy that this price point is currently in proximity to the 50-Day Moving Average (DMA), while still maintaining a position above the 200-Day Moving Average. This alignment of moving averages signals a bullish range momentum in the market.
Scenario 1: Bullish Momentum Continues
In this scenario, the price has the potential to extend its upward trajectory. The initial targets for the price could be the levels of 147.231 and 147.540. If the bullish sentiment persists, the price might even advance further to challenge the 147.780 level. This level corresponds to the top of resistance level 1. Beyond this point, the highest resistance levels to watch out for are at 148.035 and 148.112. These levels represent significant barriers where the price may encounter increased selling pressure.
Scenario 2: Possible Price Correction
Alternatively, the price may undergo a corrective phase in which it retreats from its current levels. In this case, the first support to consider is at 146.934. A successful test of this level could potentially pave the way for further downside movement towards the 146.650 level. If the selling pressure intensifies, subsequent support levels to monitor include 146.304 and 146.274.
It’s important to note that while the market presently displays bullish range momentum, caution is warranted due to signs of a potential overbought condition.
Key Levels to watch are 146.560,146.934,148.035,148.404,146.600