FX.co ★ Technical analysis on USDJPY for October 12th, 2023.

Yellow rectangles- short-term horizontal support

Green line- potential bottoming formation

USDJPY is trading around 149 for the last 8 days. Price has broken out of the wedge pattern it was in, the RSI provided bearish divergence signals, but price action remains supported. USDJPY has formed so far two higher lows and as the RSI drifts away from overbought conditions, we could see another run higher as price continues to respect the yellow rectangle support levels. First short-term support is at 148.18. Next support is at 147.30. At current levels trend remains bullish despite moving mostly sideways. There is no bearish reversal signal yet. However we prefer to be neutral if not bearish around 149. We believe upside potential remains limited.