USD/JPY Price Analysis: Overbought RSI caps Yen pair’s upside below 140.00
|- USD/JPY buyers struggle to extend latest run-up at the highest levels in six months.
- Key Fibonacci retracement level, late November 2022 peak prod Yen pair buyers.
- Multi-day-old previous resistance line, 200-DMA challenges USD/JPY bears amid bullish MACD signals.
USD/JPY edges higher as it renews the yearly top around 139.65-70 during early Thursday. In doing so, the Yen pair prods the 50% Fibonacci retracement level of its October 2022 to January 2023 downside amid overbought conditions of the RSI (14) line.
Apart from the 50% Fibonacci retracement level surrounding 139.60, the late November 2022 peak of around 139.90, quickly followed by the 140.00 round figure, also challenge the USD/JPY bulls.
In a case where the USD/JPY pair remains firmer past 140.00, the quote’s run-up towards the late November swing high of around 142.25 can’t be ruled out.
Though, the 61.8% Fibonacci retracement level near 142.50, also known as the golden Fibonacci ratio, could challenge the Yen pair buyers afterward.
Meanwhile, USD/JPY pair’s retreat remains elusive unless it breaks the previous resistance line stretched from December 2022, close to 137.80 at the latest.
Following that, the 200-DMA of around 137.20 can challenge the Yen pair sellers before giving them control.
Even so, a two-month-old ascending support line at 134.90 can prod the USD/JPY bears afterward.
Overall, USD/JPY remains on the bull’s radar even if the price is likely to witness a pullback.
USD/JPY: Daily chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.