USD/JPY Price Analysis: Lacks direction between seven-week-old support and 50-DMA

USD/JPY treads water after reversing from one-month high.
Bullish MACD signals, sustained trading beyond previous resistance lines keep buyers hopeful.
50-DMA breakout could refresh yearly top and convince buyers to keep the reins.

Anil Panchal FXStreet

USD/JPY retreats from intraday high as sellers attack 131.00 during the early hours of Wednesday’s European session. However, the Yen pair remains unchanged on a daily basis, after posting the biggest daily loss on reversing from the 50-DMA hurdle the previous day. In doing so, the USD/JPY pair reversed from the one-month high but failed to conquer a horizontal support area comprising multiple levels marked since December 20, 2022.

Not only the quote’s ability to stay beyond the seven-week-old horizontal support, near 130.50 by the press time, but successful trading beyond the previous resistance line from late November 2022, close to 129.35 at the latest, also keeps the USD/JPY buyers hopeful. Adding strength to the upside bias are the bullish MACD signals.

As a result, the pair is likely to overcome the immediate 50-DMA hurdle surrounding 132.40, which in turn could propel the USD/JPY price towards the previous monthly high of 134.77.

In a case where the quote remains firmer past 134.77, the late 2022 peak surrounding 136.70 and the 140.00 psychological magnet will be crucial to watch.

Alternatively, a downside break of the aforementioned horizontal support near 130.50 will need validation from the 130.00 round figure and the resistance-turned-support line from November, near 129.35, to convince USD/JPY bears.

Following that, a south-run towards the previous monthly low of near 127.20 can’t be ruled out.

USD/JPY: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	131.1
Today Daily Change	0.01
Today Daily Change %	0.01%
Today daily open	131.09

Trends
Daily SMA20	129.84
Daily SMA50	132.53
Daily SMA100	138.55
Daily SMA200	136.8

Levels
Previous Daily High	132.71
Previous Daily Low	130.48
Previous Weekly High	131.2
Previous Weekly Low	128.08
Previous Monthly High	134.78
Previous Monthly Low	127.22
Daily Fibonacci 38.2%	131.33
Daily Fibonacci 61.8%	131.86
Daily Pivot Point S1	130.14
Daily Pivot Point S2	129.19
Daily Pivot Point S3	127.9
Daily Pivot Point R1	132.38
Daily Pivot Point R2	133.66
Daily Pivot Point R3	134.61

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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