USD/JPY Price Analysis: Approaches 137.00 inside bullish pennant

USD/JPY pares the biggest daily loss in two weeks inside a bullish chart pattern.
Firmer RSI adds strength to the bullish bias, 100-SMA offers additional hurdle.
Convergence of 200-HMA, fortnight-old ascending trend line appears key support.

Anil Panchal FXStreet

USD/JPY picks up bids to refresh intraday high near 136.80 during Friday’s Asian session. In doing so, the yen pair advances inside a three-day-old bullish pennant.

The upside momentum also takes clues from the firmer RSI (14), not overbought.

However, a convergence of the stated pennant and the 100-HMA, near 137.00, appears a tough nut to crack for the USD/JPY buyers.

Following that, a rally towards refreshing the multi-year high marked in July at around 139.40 could be witnessed. It’s worth noting that the monthly high near 137.70 could act as a buffer during the run-up.

Meanwhile, a downside break of the pennant’s support line, at 136.50 by the press time, isn’t an open invitation to the USD/JPY bears.

The reason could be linked to the existence of the 200-HMA and an upward sloping support line from August 11, close to the 136.00 round figure.

In a case where the USD/JPY bears keep reins past 136.00, the early-month high near 135.60 could become an intermediate halt before directing the anticipated fall towards the monthly low near 130.40.

USD/JPY: Hourly chart

Trend: Further upside expected

Additional impotant levels

Overview
Today last price	136.76
Today Daily Change	0.27
Today Daily Change %	0.20%
Today daily open	136.49

Trends
Daily SMA20	134.64
Daily SMA50	135.72
Daily SMA100	132.51
Daily SMA200	124.25

Levels
Previous Daily High	137.2
Previous Daily Low	136.32
Previous Weekly High	137.23
Previous Weekly Low	132.56
Previous Monthly High	139.39
Previous Monthly Low	132.5
Daily Fibonacci 38.2%	136.66
Daily Fibonacci 61.8%	136.86
Daily Pivot Point S1	136.14
Daily Pivot Point S2	135.79
Daily Pivot Point S3	135.26
Daily Pivot Point R1	137.02
Daily Pivot Point R2	137.55
Daily Pivot Point R3	137.9

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.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.