USDJPY Stumbles Around 4½-Year Highs As Bullish Forces Wane

USDJPY rose after the price met strong support at the 112.71 region in early November. However, the pair has given up since its recent build-up stopped at the 4½-year high of 114.96.

This recent pullback is likely to continue, as the short-term oscillators indicate that the positive momentum is fading. The MACD histogram is above zero but below its red signal line, while the RSI is flat in the 50-neutral mark.

If the selling pressure intensifies, the 113.66 level could serve as an immediate support. A drop below this level would open the way to the 113.45 region. If sellers overcome this obstacle, 113.23 could demonstrate a strong support barrier for the price before the bears target the key psychological mark of 113.00.

On the other hand, if buyers manage to regain control and the prices rise, the first resistance point could be found at the 114.29 level, which has suspended four prices in the last month. Overcoming this level, the next hurdle for the pair could be met at 114.45 or even higher at the 114.70 region. Emptying these barricades would signal the resumption of the near-term growth, sending the price to challenge its 4½-year high of 114.96.

Overall, USDJPY appears to be running out after posting a 4-year high, but it still holds its bullish short-term structure. For the positive image to change, the price must dip below the 113.23 level.