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Title: USD/JPY Price Analysis: No man’s land hints at further consolidation

September 27, 2022 12:43 AM ET

By: AnalysisWatch

The USD/JPY pair slipped to 144.27 in Tokyo trading after failing to hold above the critical 144.50 resistance. The asset is continuously facing barricades above 144.50 despite multiple attempts. On a broader scale, the asset is rising sharply after hitting a low of 140.35.

On the four-hour scale, it appears that the major is auctioning off in a process of inventory adjustment. It is crucial to note that the adjustment process is an accumulation or a distribution. The odds favor a stock distribution as the asset shows signs of momentum loss.

The price of the asset is overlapping the 20- and 50-period Exponential Moving Averages (EMAs), indicating an impending consolidation.

A look at the state of the Relative Strength Index (RSI) (14) shows that the oscillator is struggling to enter the bullish 60.00–80.00 range. This is the case after the momentum oscillators indicated a vertical shift from the bullish area to a bearish area of 20.00-40.00.

For a decisive bearish trend reversal, the level needs to fall below Thursday's low at 140.35. Should this occur, the level will be pulled towards the August 30 low at 138.05 and then the August 23 low at 135.81.

Alternatively, dollar bulls could push the level higher after breaking above Thursday's high at 145.90, which would push the level towards the August 1998 high at 147.67. If the latter level is breached, the major will be pushed towards the psychological resistance of 150.00.

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