USD/JPY Price Analysis: Yen pair retreats from five-month-old resistance to mid-137.00s

USD/JPY prints the first daily loss in six around two-week high.
Nearly overbought RSI conditions, key resistance line challenge Yen pair buyers.
200-DMA restricts immediate downside amid bullish MACD signals.

Anil Panchal FXStreet

USD/JPY bulls take a breather around 137.50, the highest level in a fortnight, as market sentiment dwindles during early Thursday in Europe. In doing so, the Yen pair prints the first daily loss in six while easing from the downward-sloping resistance line from December 2022.

Not only the sluggish markets and the Yen pair’s inability to cross the key resistance line but the nearly overbought RSI (14) line also favors the quote’s latest pullback.

However, the 200-DMA puts a floor under the USD/JPY prices around the 137.00 round figure.

Following that, the 38.2% Fibonacci retracement level of the Yen pair’s fall from October 2022 to January 2023, near 136.65, may challenge the sellers.

In a case where the USD/JPY remains bearish past 136.65, an upward-sloping support line from March 24 and the 50-DMA, respectively near 134.50 and 133.80, will be in the spotlight.

On the contrary, the USD/JPY pair’s daily closing beyond the aforementioned resistance line, around 137.80 by the press time, needs validation from the 138.00 round figure and late 2022 peak of around 138.20.

Should the Yen pair buyers keep the reins above 138.20, the odds of witnessing a rally toward the 140.00 psychological magnet can’t be ruled out.

Overall, USD/JPY is likely to witness further pullback but the trend remains bullish.

USD/JPY: Daily chart

Trend: Bullish

Additional important levels

Overview
Today last price	137.49
Today Daily Change	-0.19
Today Daily Change %	-0.14%
Today daily open	137.68

Trends
Daily SMA20	135.16
Daily SMA50	133.75
Daily SMA100	133.01
Daily SMA200	137.07

Levels
Previous Daily High	137.71
Previous Daily Low	136.31
Previous Weekly High	135.77
Previous Weekly Low	133.74
Previous Monthly High	136.56
Previous Monthly Low	130.63
Daily Fibonacci 38.2%	137.18
Daily Fibonacci 61.8%	136.84
Daily Pivot Point S1	136.75
Daily Pivot Point S2	135.83
Daily Pivot Point S3	135.34
Daily Pivot Point R1	138.16
Daily Pivot Point R2	138.64
Daily Pivot Point R3	139.57

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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