USD/JPY Price Analysis: 200-DMA prods bulls at three-month high amid overbought RSI
- USD/JPY clings to mild gains near the highest levels since mid-December 2022.
- Sustained break of 100-DMA favors bulls to keep the reins.
- One-month-old ascending resistance line adds to the upside filters.
USD/JPY buyers occupy the driver’s seat even as markets remain calm during early Wednesday, following a volatile end to Tuesday’s trading session. In doing so, the Yen pair makes rounds to the 137.40-50 area after rising to the highest levels since mid-December 2022.
It should be noted that the Yen pair’s latest run-up could be linked to a successful upside break of the 100-DMA hurdle. However, the 200-DMA level surrounding 137.45-50 restricts the quote’s immediate upside amid the overbought conditions of the RSI (14).
Even if the USD/JPY bulls manage to cross the stated key moving average, an upward-sloping resistance line from early February, near 138.35 by the press time, could challenge the pair’s further advances.
In a case where the Yen pair bulls ignore the RSI conditions and keep the controls past the aforementioned resistance line, the 50% Fibonacci retracement level of its downturn from October 2022 to January 2023, near 139.60, may act as an additional upside filter.
Meanwhile, the 38.2% Fibonacci retracement level and the 100-DMA, respectively near 136.70 and 136.25, restrict short-term USD/JPY downside.
Following that, a one-month-old ascending support line, near 135.45 at the latest, will be crucial for the bears to watch.
USD/JPY: Daily chart
Trend: Limited upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
