USD/JPY Price Analysis: Renews three-week high but 50-DMA probes bulls
- USD/JPY grinds higher around three-week top during two-day uptrend.
- Successful break of 130.00 support-confluence join firmer oscillators to favor bulls.
- 50-DMA challenges immediate upside ahead of January’s peak.
USD/JPY remains firmer as buyers keep the reins at the highest levels in three weeks during early Monday. In doing so, the Yen pair also justifies the previous day’s upside break of the key 130.00 hurdle, now support, while portraying a two-day uptrend. That said, the Yen pair trades around 132.30 by the press time.
In addition to the upside break of the previous resistance line from late November 2022 and the 21-DMA, bullish MACD signals and upbeat RSI (14), not overbought, also keep the USD/JPY buyers hopeful.
However, the 50-DMA hurdle surrounding 132.70 presently challenges the USD/JPY bulls. Also acting as an upside filter is the previous monthly peak of around 134.80.
It should be noted that a clear upside break of 134.80 could convince buyers to retake control and reverse the downtrend from early November.
On the flip side, the aforementioned resistance-turned-support confluence near the 130.00 psychological magnet puts a floor under the USD/JPY prices.
Following that, an ascending trend line from mid-January will challenge the USD/JPY sellers around 128.20.
If at all the USD/JPY bears manage to conquer the 128.20 support bottom surrounding 127.20 and May 2022 low near 126.35 could probe them before highlighting the 120.00 round figure.
Overall, USD/JPY is likely to extend the latest recovery but a clear upside break of the 50-DMA becomes necessary for the buyer’s welcome.
USD/JPY: Daily chart
Trend: Further upside 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.
