USDJPY – the downside becomes more vulnerable after bulls stalled at 148 barrier

USDJPY remains constructive so far, despite strong rejection at 148 barrier earlier today.

The pair opened with gap higher and accelerated through 146.77/88 barriers (100DMA / Fibo 61.8% of 151.20/139.88) to crack psychological 148 level, before turning lower.

Quick pullback signaled that bulls lost traction, with overbought conditions on daily chart prompting profit-taking.

Bulls need to see today’s close above 146.77/88 to remain in play, although facing threats from fading dollar’s safe-haven appeal.

Further weakness and return to the recent range (142.11/146.28) would further dent bulls and generate initial signal of false break higher.

Technical picture is predominantly bullish on daily chart (strong positive momentum / price holds above daily cloud) that keeps in play hopes of fresh push higher if current correction finds ground above 146 handle.

Res: 146.88; 147.67; 148.00; 148.53
Sup: 146.14; 145; 54; 145.00; 144.47