FxNews—The USD/JPY downtrend from 156.6 eased near the 50% Fibonacci retracement level (150.7). The currency pair’s uptick in momentum from 150.7 was expected because the RSI 14 and Stochastic Oscillator hover in the oversold territory.
Bulls Gain as Bears Lose Steam at 151.8
As of this writing, USD/JPY trades at approximately 151.8. Meanwhile, the Awesome Oscillator histogram depicts green bars but is still below the signal line. This development in the technical indicators suggests that while the primary trend is bearish, the bear market weakens.
USDJPY Eyes 151.85 Resistance for Next Bull Run
The immediate resistance for the current uptick in momentum is at 151.85. From a technical perspective, USD/JPY could rise toward higher resistance areas if bulls close and stabilize above the 151.85 mark. In this scenario, the next bullish target could be the 38.2% Fibonacci resistance level at 153.3.
Please note that the bullish outlook should be invalidated if USD/JPY falls below 150.7. If this scenario unfolds, the downtrend will likely resume, and the next bearish target could be the 61.8% Fibonacci support level at 148.0.