USD/JPY Price Analysis: Hidden bullish divergence, rising channel favor run-up beyond 130.00

USD/JPY extends the previous day’s rebound to refresh weekly top.
Ascending trend channel, bullish RSI divergence keep buyers hopeful.
61.8% FE, channel’s resistance challenge bulls, 100-SMA acts as additional downside filter.

Anil Panchal FXStreet

USD/JPY remains on the front foot around the weekly top surrounding 130.50 during Friday’s Asian session. The yen pair’s latest gains could be well linked to the market’s rush to risk safety and Japan’s return from holidays.

Technically, hidden bullish divergence of the RSI and USD/JPY prices join a 13-day-old rising channel to underpin the latest run-up.

The aforementioned divergence takes place when prices make higher high but the indicator, here RSI, prints lower low. The divergence hints at a gradual pick-up in the upside momentum backed by the buyer’s confidence.

That said, the quote is well-directed towards the previous monthly top near 131.15. However, a convergence of the stated channel’s upper line nad 61.8% Fibonacci Expansion (FE) of April 14 to May 04 upside, around 132.50, appears a tough nut to crack for the USD/JPY bulls.

Alternatively, pullback moves remain elusive beyond the channel’s support line, close to 129.00 by the press time. Also acting as the key support is the 100-SMA level near 128.55.

Overall, USD/JPY maintains the bullish trajectory but will be tested for further advances soon.

USD/JPY: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	130.53
Today Daily Change	0.31
Today Daily Change %	0.24%
Today daily open	130.22

Trends
Daily SMA20	127.87
Daily SMA50	122.69
Daily SMA100	118.79
Daily SMA200	115.38

Levels
Previous Daily High	130.56
Previous Daily Low	128.76
Previous Weekly High	131.26
Previous Weekly Low	126.95
Previous Monthly High	131.26
Previous Monthly Low	121.67
Daily Fibonacci 38.2%	129.87
Daily Fibonacci 61.8%	129.44
Daily Pivot Point S1	129.13
Daily Pivot Point S2	128.04
Daily Pivot Point S3	127.33
Daily Pivot Point R1	130.93
Daily Pivot Point R2	131.65
Daily Pivot Point R3	132.73

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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