The USD/JPY pair posted a modest decline during recent intraday trading, as it searches for a potential rising bottom that could act as a foundation for the next upward move. This development comes within the context of a prevailing bullish corrective trend on the short-term chart.
Despite the pullback, the pair remains above its 50-period Exponential Moving Average (EMA50), underscoring the ongoing bullish structure. Additionally, the Relative Strength Index (RSI) has dropped into oversold territory, signaling the possibility of a forthcoming positive divergence—a technical condition that often precedes a price rebound.
Outlook:
As long as the USD/JPY maintains support above key technical levels, a recovery attempt remains likely, with bulls potentially targeting new highs once positive momentum is regained.
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