USDJPY has climbed above the 110 handle after starting the day below this mark. The pair recorded a two-week high during yesterday’s trading.
As regards the Ichimoku analysis, the negative short-term alignment that occurred when the Tenkan-sen line (red) crossed below the Kijun-sen (blue) in late March is still in place. The fact that Tenkan-sen is currently flat though, might indicate that the bearish bias is losing steam for a more neutral outlook. This is also evident from the RSI indicator, which is theoretically bearish at 48, but has steeply risen in order to reach its current level.
The Tenkan-sen and yesterday’s high, ranging from 110.49 to 110.59, might form a resistance area to the upside. A break above this area would shift the focus to the 111 handle -a potential psychological level- as another barrier to further price advances.
On the downside, the Kijun-sen, currently at 109.35, combined with the 200-day moving average (MA) at 108.99, could constitute a support area. Should this area fail to hold, the April 17 more than five-month low of 108.12 would be eyed for additional support.
Turning to the medium-term picture, it currently looks mostly neutral with the price in between the 50- and 200-day MAs and the 200-day MA being flat.
To sum up, it seems that the short-term bias is shifting to neutral and the medium-term is looking mostly neutral.
Origin: XM
