USDJPY – correction is likely to be limited

USDJPY extends pullback from the three-month high (150.88) into second straight day, as traders booked profits after Tuesday’s rally of nearly 1%.

Overbought daily studies contributed to fresh selling, which is expected to push the price lower and offer better levels for new entries into broader bullish market.

Correction is likely to be limited as larger bulls remain fully in play, with initial support at 150 being cracked and guarding rising 10DMA (149.24) and extended dips to find ground above the bull-trendline (148.43) to mark a healthy correction and keep bulls in play for push towards key barrier at 151.90 (2023 high, posted on Nov 13).

Weekly close above psychological 150 level, will be the first one since early November and expected to boost existing bullish outlook.

Res: 150.88; 151.00; 151.43; 151.90
Sup: 150.00; 149.24; 148.80; 148.43