FxNews—The US dollar erased 0.8% of its recent losses against the Japanese Yen today, trading at approximately 150.8. The recent uptick in momentum was anticipated as the RSI 14 indicator signaled a bullish divergence in the 4-hour chart.
As for the technical indicators, the USD/JPY primary trend should be considered bearish as the prices are below the 50-period simple moving average. Additionally, the Stochastic oscillator is about to step into the overbought territory as the currency pair approaches the 151.8 critical resistance, backed by the 50-period simple moving average.
This means the prices can potentially reverse from 151.8. In this scenario, the 148.15 support will likely be the next bearish target.
Please note that the bullish outlook should be invalidated if the currency pair exceeds the 151.8 mark.
