USD/JPY Price Analysis: Closes in on resistance with possibility of temporary pullback

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USD/JPY Price Analysis: Closes in on resistance with possibility of temporary pullback
Technical Analysis
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USD/JPY has rallied up to retest technical resistance at around 156.79 (May 14 high), and there is a possibility it could temporarily falter.

USD/JPY closes in on a resistance level at former highs. The pair could pullback temporarily from the technical resistance level. The uptrend remains intact, however, suggesting further upside will probably eventually follow. USD/JPY has rallied up to retest technical resistance at around 156.79 , and there is a possibility it could temporarily falter.

The Moving Average Convergence Divergence momentum indicator is showing a lack of momentum in the most recent move up from the May 16 lows, which could be a warning sign. The blue MACD line has not crossed below the red signal line, however, as would be expected to accompany the beginning of a deeper pullback. If USD/JPY corrects it will probably find support at the level of the cluster of Moving Averages between 155.50-80. A break above the resistance level at 156.

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