USD/JPY Price Analysis: Retreats from monthly resistance around 137.00
- USD/JPY eases from one-week high, fades bounce off 200-DMA.
- Impending bull cross on MACD, falling wedge formation keeps buyers hopeful.
- Sellers have a bumpy road to travel unless breaking August month’s low.
USD/JPY takes offers to refresh intraday low around 136.90, extending pullback from a one-week high during early Wednesday.
In doing so, the Yen pair reverses from a downward-sloping resistance line from early November while fading the weak-start bounce off the 200-DMA.
However, the looming bull cross on the MACD indicator joins the falling wedge bullish chart formation to challenge the USD/JPY sellers.
That said, the 200-DMA level surrounding 134.70 restrict the short-term downside of the pair ahead of the lower line of the stated wedge, near 132.70.
Following that, lows marked in August month around 131.75 and 130.40 will precede the 130.00 psychological magnet to challenge the USD/JPY pair’s further downside.
It’s worth noting, however, that the Yen pair’s sustained trading below 130.00 could make it vulnerable to slump toward May’s low near 126.35.
Meanwhile, recovery moves need to provide a successful break of the stated wedge’s upper line, near 137.45 by the press time.
Even so, a downward-sloping resistance line from late October could challenge the USD/JPY bulls around 139.80.
Following that, the 140.00 round figure and the late November swing high near 142.25 may act as buffers during the run-up towards the theoretical target of the falling wedge, close to 151.40.
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.
