The USD/JPY currency pair is currently experiencing a robust bullish trend, approaching a significant resistance level at approximately 143.135. Moreover, the price is positioned above both the 200 and 50 Day Moving Averages, signaling a strong bearish momentum within a range-bound scenario.
Scenario 1, should the prevailing bullish sentiment persist, we may witness a potential upward movement towards the 143.449 level, subsequently testing the 143.953 level. Further advancement could lead the price to explore the 144.196 to 144.692 range, which aligns with the uppermost boundary of the resistance level. The most notable resistance level to monitor stands at 144.895.
Scenario 2, a corrective decline in price could occur, testing the support at 137.913. A successful test at this level might initiate further downward momentum, heading towards the 137.650 support level. Subsequent support levels include 137.357 and 137.077, with particular attention drawn to the 137.273, as it represents the previous low and could act as a key support.
Presently, the market exhibits an evident bearish momentum, with the Relative Strength Index (RSI) approaching the overbought region. As such, a bearish reversal may be on the horizon.
The key levels we should closely monitor in the near term are 143.449, 144.069, 144.692, 142.818, and 142.486.
Overall, the technical outlook suggests a cautious approach, keeping a close eye on the price action and the RSI.
