The USD/JPY currency pair made a 24-year high last week at 144.99 and could not meaningfully break above an ascending trend line. It is seen lingering and hesitating.
The said trend line also coincided with the 161.8% extension of the late July pullback from 139.39 to 130.39. The 144.95 – 145.20 area might continue to offer resistance.
The pullback from the new high saw the price moves back inside the upper 21-day simple moving average (SMA) based Bollinger Band, which might indicate the unfolding of a reversal or the pause of bullish momentum.
As a result of the fast-track bullish move, the current sell-off has not crossed below most SMAs.
A bullish triple moving average (TMA) formation requires that all SMAs have a positive gradient and the price is above the short-term SMA, the latter be above the medium-term SMA, and the medium-term SMA to be above the long-term SMA.
Looking at any combination of the 10-, 21-, 34-, 55-, 100-, and 200-day SMAs, the criteria for a bullish TMA have been met. The 34-day SMA has just crossed above the 55-day SMA.
EUR/JPY barely went beyond former peaks after a breakout but stays elevated
If the Yen weakening trend recommences, how high will the USD/JPY and EUR/JPY go?