USD/JPY Bulls Regain Traction Amid Improving Technical Studies
The USD/JPY currency pair has regained traction on Monday after a brief setback on Friday's strong upside rejection. The bulls have maintained control, and technical studies are improving, which suggests that the upward momentum may continue.
The daily chart is showing a bullish configuration with the RSI rising above the neutrality zone and the 10/20 DMA in an upward trend. Additionally, the weekly chart displays a bullish engulfing pattern, further supporting the bulls' stance.
However, there are still some warning signs for the bulls to be aware of. The stochastic indicator is overbought, and the 14-d momentum remains in negative territory, indicating potential headwinds ahead.
The 50% retracement level at 156.64 has reverted to support, which should hold dips and keep the bullish bias intact. As the yen continues to be under pressure due to the BOJ's dovish hike last week, it is likely that the USD/JPY will remain strong.