USD/JPY Price Analysis: Traces firmer yields to refresh yearly top, 141.60 in the spotlight

USD/JPY jumps to the highest levels since November 2022, prints the biggest daily gains in a month.
Upside break of previous yearly peak of around 141.00, looming bull cross on MACD favor Yen pair buyers.
Overbought RSI, ascending resistance line from early March limit further upside.

Anil Panchal FXStreet

USD/JPY bulls are high as the Yen pair renews the yearly peak near 141.45 amid early Thursday. In doing so, the risk-barometer pair prints the biggest daily gains, so far, in a month amid upbeat US Treasury bond yields.

That said, the US 10-year Treasury bond yields rise three basis points (bps) to 3.83% by the press time, versus the previous day’s lackluster move near a three-week top. While tracing the firmer bond coupons, the hawkish Fed bias and economic fears gain major attention.

Also read: USD/JPY looks to build on momentum beyond 141.00, highest since November 2022

On the other hand, sustained trading beyond the previous high of 2023, of around 141.00, enables the USD/JPY buyers to keep the reins, especially amid an impending bull cross on the MACD.

However, the nearly overbought RSI (14) line joins a three-month-old rising trend line, near 141.60 at the latest, to cap the pair’s immediate upside.

It should be noted that the late November 2022 high of near 142.25 and the 61.8% Fibonacci retracement level of the pair’s October 2022 to January 2023 fall, near 142.45, act as additional upside filters for the USD/JPY bulls to cross for conviction.

On the flip side, a one-month-old rising support line joins the 50% Fibonacci retracement level to limit the short-term downside of the USD/JPY pair near 139.55. Following that, the 200-DMA support of near 137.25 will be in the spotlight.

That said, the 141.00 mark and the 140.00 psychological magnet are extra supports to watch for the Yen pair traders.

USD/JPY: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	141.34
Today Daily Change	1.28
Today Daily Change %	0.91%
Today daily open	140.06

Trends
Daily SMA20	139.49
Daily SMA50	136.54
Daily SMA100	134.79
Daily SMA200	137.26

Levels
Previous Daily High	140.28
Previous Daily Low	139.28
Previous Weekly High	140.45
Previous Weekly Low	138.76
Previous Monthly High	140.93
Previous Monthly Low	133.5
Daily Fibonacci 38.2%	139.67
Daily Fibonacci 61.8%	139.9
Daily Pivot Point S1	139.46
Daily Pivot Point S2	138.87
Daily Pivot Point S3	138.46
Daily Pivot Point R1	140.47
Daily Pivot Point R2	140.88
Daily Pivot Point R3	141.47

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.

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, tests $5,400

Gold benefits from intense risk-aversion on Monday and climbs to the $5,400 region, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.