USD/JPY Price Analysis: Bounces off immediate support to pare intraday losses above 137.00
- USD/JPY recovers from intraday low, bounces off three-day-old support line.
- Bearish MACD signals, one-week-old ascending trend line challenge buyers.
- 200-HMA, 134.50 act as the additional downside filters.
USD/JPY picks up bids to 137.40 as it pares intraday losses during early Friday morning in Europe. In doing so, the Yen pair bounces off an upward-sloping support line from Tuesday.
That said, the recovery moves currently aim for the ascending resistance line from December 07, close to 138.10. However, bearish MACD signals and the stated hurdle could challenge the pair’s further upside.
In a case where the USD/JPY pair stays firmer past 138.10, the 139.00 round figure and the November-end swing high near 139.90 could challenge the bulls.
It’s worth noting that the 140.00 round figure acts as the last defense of the pair bears.
Alternatively, a downside break of the aforementioned immediate support line, close to 137.25 by the press time, isn’t an open ticket to the USD/JPY bears as the 200-HMA support around 136.55 could challenge the quote’s further downside.
Following that, the weekly low around 134.50 may probe the USD/JPY bears before directing them to the monthly bottom around 133.60.
If at all the Yen pair remains bearish past 133.60, the odds of witnessing a south-run towards May’s high near 131.30 can’t be ruled out.
USD/JPY: Hourly chart
Trend: Limited recovery 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.
