USD/JPY Price Analysis: 200-HMA prods bulls around mid-131.00s

USD/JPY bulls take a breather after rising nearly 80-pips on key resistance break.
Nearly Overbought RSI conditions join 200-HMA to challenge Yen pair buyers.
Three-week-old descending trend line adds to the upside filters.
Weekly support line stops bears from retaking control.

Anil Panchal FXStreet

USD/JPY struggles around intraday high, after a stellar run-up to 131.66, as the key moving average challenges the Yen pair buyers during early Wednesday. Also testing the upside momentum are the overbought conditions of the Relative Strength Index (RSI) line, placed at 14.

That said, USD/JPY rallied nearly 85 pips on breaking a fortnight-long descending trend line. The recovery moves, however, failed to cross the 200-Hour Moving Average (HMA).

It’s worth noting that the MACD signals are bullish and can join the latest trend line breakout to propel Yen prices beyond the latest HMA hurdle surrounding 131.55.

Even so, a downward-sloping resistance line from March 08, close to 131.90 by the press time, closely followed by the 132.00 round figure, could challenge the USD/JPY bulls.

On the contrary, pullback moves remain elusive unless staying beyond the previous resistance line, around 131.05 at the latest.

Following that, an ascending trend line from the last Friday, close to 130.60, will precede the latest swing low around 129.65 to act as the last defence of the USD/JPY bulls.

To sum up, the USD/JPY pair is likely to grind higher even if the bullish trend appears far from here.

USD/JPY: Hourly chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	131.55
Today Daily Change	0.68
Today Daily Change %	0.52%
Today daily open	130.87

Trends
Daily SMA20	133.79
Daily SMA50	132.72
Daily SMA100	134.15
Daily SMA200	137.36

Levels
Previous Daily High	131.6
Previous Daily Low	130.41
Previous Weekly High	133
Previous Weekly Low	129.64
Previous Monthly High	136.92
Previous Monthly Low	128.08
Daily Fibonacci 38.2%	130.86
Daily Fibonacci 61.8%	131.15
Daily Pivot Point S1	130.32
Daily Pivot Point S2	129.76
Daily Pivot Point S3	129.12
Daily Pivot Point R1	131.52
Daily Pivot Point R2	132.16
Daily Pivot Point R3	132.71

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.

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