USD/JPY in Short-Term Bullish Momentum on a 240 Minute chart, Testing Resistance near the 147 level
The price of USD/JPY is currently positioned at the 146.650 level. Notably, the price is trading above both the 200 and 50-day moving averages, signifying a strong bullish momentum.
Scenario 1: Bullish Continuation
If the current bullish momentum persists, the price could continue its upward trajectory, aiming to retest the 146.934 level. Further bullishness might lead to an advance towards the 147.231 level, which corresponds to the top of the resistance level 1. The highest resistance level in sight is at 147.554.
Scenario 2: Bearish Correction
Conversely, the price might experience a bearish correction, heading lower to test the 146.274 level. A successful test at this support level could trigger further downward movement towards the 146.081 level. Subsequent support levels include 145.682 and 145.341, with key levels to watch at 145.097.
The current market momentum suggests a range-bound condition, however a strong bullish momentum to the upside is possible. However, a pullback from previous highs indicates that the market may be overbought. Additionally, the Relative Strength Index (RSI) is nearing the overbought region, signaling potential overextension in the market.
Key Levels to watch are 146.560,146.934,147.231,147.554