• USDJPY remains below uptrend line but shows bullish signs

• Stochastic posts positive crossover near oversold area

USDJPY posted a bullish doji pattern in the preceding three trading days, indicating a reversal to the upside after the sell-off towards the 147.10 support level.

Technically, the RSI indicator is holding in the negative territory, suggesting that more losses may be on the cards; however, the stochastic oscillator completed a positive crossover within its %K and %D lines in the oversold zone, confirming more gains in the short-term.

Despite that, the technical oscillators show contradictory signs. If the market overcomes the 20- and the 50-day simple moving averages (SMAs) around 150.00, the outlook would change to strongly bullish again. Even higher, the 13-month peak of 151.90 is waiting to be penetrated and meet the 152.00 round number.

Alternatively, a drop below the 147.10 barricade could send the pair into steeper losses, hitting the 145.80 zone and then the 144.40 support. Below that, the 200-day SMA at 141.50 could act as significant support for the bulls.

Summarizing, USDJPY is still beneath the penetrated ascending trend line, but the latest bullish pattern is a positive signal for traders.