USDJPY may improve towards the psychological resistance of 148.00.
USDJPY struggles to inch higher for the second straight session, trading near the 147.70 mark during European hours on Friday. The USDJPY strengthens as the Tokyo Consumer Price Index (CPI) in Japan’s national capital falls below the Bank of Japan’s (BoJ) 2.0% goal for the first time in nearly two years.
USDJPY Technical Outlook
Technical indicators point to a positive trend towards January’s high of 148.80.
A break below 147.00 might take the pair to the 14-day EMA and 23.6% Fibonacci retracement level.
The technical analysis of the Moving Average Convergence Divergence (MACD) for the USDJPY pair indicates a confirmation of The MACD line is above the centreline and has diverged above the signal line, indicating a positive market mood.
The USDJPY pair could encounter a psychological barrier at 148.00. A strong break over the psychological barrier level might propel the pair towards the significant level at 148.50, followed by the weekly high at 148.69 and the January high at 148.80.
Furthermore The lagging indicator 14-day Relative Strength Index (RSI) is above 50, indicating bullish momentum, which can help the USDJPY pair negotiate the resistance area near the psychological level of 149.00.
Moreover On the downside, immediate support might be found around the significant level of 147.50, which follows the psychological level of 147.00. A collapse beneath the psychological The pair might challenge the support zone around the 14-day Exponential Moving Average (EMA) at 146.90, as well as the 23.6% Fibonacci retracement barrier at 146.78.
