USDJPY bulls vs. Bank of Japan: Who will win?

USDJPY bulls are looking to challenge the Bank of Japan, yet again!

This FX pair is hovering close to the psychological 152 level, which had in recent weeks prompted stern warnings from Japanese government officials about potential "intervention".

If Japan does intervene and put a halt to an even-weaker Yen, that could be a painful lesson for USDJPY bulls!

However, the technical indicators for USDJPY are still predominantly bullish.

USDJPY prices are still trading above key moving averages, although the RSI and MACD provide cautionary signals that warrant attention for signs of a potential shift in momentum.

Moving averages appear bullish

The 21-period Simple Moving Average (SMA) is currently at ~150.7304, suggesting a bullish sentiment as the price is trading above this short-term average.

The 50-period SMA and 100-period SMA are positioned at 149.9379 and 147.8284, respectively, further reinforcing the uptrend as the price remains above both longer-term averages.

USDJPY flirts with "overbought" conditions

The 14-day Relative Strength Index (RSI) is in neutral territory (at ~64.58), but closer to the upper border (>70 – overbought, <30 – oversold).

This may indicate that while the market is not yet in overbought territory, it is gaining upward momentum.

Traders should be cautious of potential reversals if the RSI continues to climb and breaks above the upper boundary of 70.