Mixed Indicators for the USDJPY
The U.S. dollar recovered from 146.4 and tested the 38.2% Fibonacci resistance at 148.1. The EMA 50 and the Ichimoku cloud reinforce this resistance level, making it more robust.
The RSI and the AO indicators signal a bull market; however, the ADX indicates a slowdown in market momentum, which could be interpreted as a halt in the recent uptick bias.
From a technical standpoint, we are in a bear market, and the current bullish wave could be a consolidation phase. Therefore, the market will likely decline if the price remains below the EMA 50. A break below the ascending trendline, depicted in red, can trigger selling pressures.
Conversely, if the USDJPY bulls can cross the EMA 50 and stabilize the price above it, the bear market should be invalidated, and traders should reevaluate the market.