USD/JPY Price Analysis: 21-DMA guards immediate upside
|- USD/JPY struggles with short-term moving average to extend post-Fed gains.
- Clear break of three-week-old resistance line keeps buyers hopeful to challenge November 2021 top.
- Downbeat Momentum line probes the pair’s further upside.
- 100-DMA, 50% Fibonacci retracement act as strong supports.
USD/JPY buyers attack 21-DMA to extend Fed-led gains during early Thursday.
The yen pair crossed a downward sloping resistance line from January 04, now support around 114.15, to refresh weekly high near 114.78. However, failures to cross the 21-DMA dragged the quote back to 114.65-60 by the press time.
In addition to the failures of the cross the 21-DMA, the downbeat Momentum line also probes USD/JPY buyers until the quote stays below 114.80 level comprising the stated short-term moving average.
If at all USD/JPY rises past 114.80, November’s peak of 115.52 and monthly top near 116.35 will be in focus.
Alternatively, pullback moves may initially aim for the previous resistance line near 114.15, a break of which will direct USD/JPY prices towards 38.2% Fibonacci retracement (Fibo.) level of September 2021 to January 2022 upside, at 113.60.
Though, the pair’s downside past 113.60 will be difficult as the 100-DMA and 50% Fibo., respectively around 113.40 and 112.75, appear tough nuts to crack for the pair bears.
USD/JPY: Daily chart
Trend: Pullback expected
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