USD/JPY Price Analysis: Rises to fresh high since 1998, bulls eye 147.00

• USD/JPY renews 24-year high during six-day uptrend, picks up bids of late.
• Overbought RSI, monthly resistance line can challenge further upside.
• Three-week-old support line, 10-DMA restricts immediate downside.
• Bulls are likely to keep the reins amid fears of short-term pullback.

USD/JPY bulls are on the roll as they refresh the multi-year high near 146.40 early Wednesday, posting the six-day winning streak.

In doing so, the yen pair ignores the nearly overbought RSI conditions while taking clues from the impending bull cross on the MACD and the quote’s sustained break of the previous top surrounding 145.90.

It should be noted that the quote’s latest upside aims for a monthly resistance line of around 147.00. However, the pair’s further upside appears difficult due to the convergence of the ascending resistance line from late April and 100% Fibonacci Expansion (FE) of April-August moves, near 148.60. Also acting as an upside filter is the August 1998 high near 147.70.

Meanwhile, three-week-old support and the 10-DMA restrict short-term USD/JPY downside to around 145.30 and 145.0 respectively.

Following that, September’s low near 140.35 and July’s peak of 139.40 will be important for the bears.

However, the bearish bias remains elusive until the quote stays beyond the August month’s low near 140.30.

USD/JPY: Daily chart

Trend: Bullish