USD/JPY Bulls Retake 200-Day SMA Amid Recovery

The USD/JPY currency pair has seen a recovery in recent days, with prices pushing above the 200-day Simple Moving Average (SMA) at 158.06.

This rebound comes after two days of intervention by US and Japanese authorities in the FX markets.

According to technical analysis, despite this recovery, the overall trend remains downwards, with bearish momentum still dominant.

The Relative Strength Index (RSI) has exited oversold territory near 20, but the path of least resistance favors further Yen strength.

If USD/JPY ends Thursday's session above the 200-day SMA, it opens the door for a challenge to higher prices, with the next resistance at 159.00 and then the 100-day SMA at 160.00.