USD/JPY Price Analysis: Retreats from six-month high below 141.00 as adjacent resistance line prods bulls
- USD/JPY eases from yearly high, snaps three-day uptrend.
- One-week-old resistance line, overbought RSI (14) line challenge Yen pair buyers.
- 12-day-old bullish trend channel, upbeat MACD signals and sustained trading beyond 200-SMA favor buyers.
USD/JPY remains dicey at 140.60 as the Yen pair buyers struggle to extend the previous uptrend heading into Monday’s European session. In doing so, the quote also justifies the overbought RSI (14) line and the quote’s inability to cross a one-week-old ascending resistance line.
Even so, bullish MACD signals and a two-week-old ascending trend channel, as well as the quote’s ability to stay firmer past 200-SMA, keeps the USD/JPY buyers hopeful.
Hence, the quote’s latest pullback remains elusive unless it breaks the 200-SMA support level of 135.75.
Following that, the monthly low o around 133.50 and the 130.00 psychological magnet could act as the last defense of the USD/JPY buyers.
That said, the aforementioned channel’s bottom line and a previous resistance line from May 02, respectively near 139.75 and 139.20, could act as intermediate halts to watch during the Yen pair’s weakness.
Alternatively, an upside break of the weekly resistance line, close to 141.05 at the latest, could propel the USD/JPY towards the aforementioned channel’s peak of near 142.00 However, the six-month high to around 142.25, comprising the late November 2022 peak, can act as the final battle to be won for the Yen pair buyers before retaking the control.
USD/JPY: Four-hour chart
Trend: Bullish
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.
