- USD/JPY prints three-day uptrend as it pokes one-month-old descending resistance line.
- Clear upside break of 21-DMA, firmer oscillators suggest the Yen pair’s further upside.
- Bearish need validation from 12-week-old ascending support line to retake control.
USD/JPY buyers occupy the driver’s seat for the third consecutive day as they pierce a one-month-old descending resistance line near 132.65 during early Monday.
In doing so, the Yen pair justifies the upside break of the 21-DMA, the first in a monthly, while also taking clues from the upbeat oscillators. That said, the MACD portrays the strongest bullish signals in a month while the RSI (14) also grinds higher past the 50 level, suggesting a gradual run-up of the pair.
It’s worth noting, however, that the 50-DMA hurdle, around 133.20, appears a short-term key challenge for the USD/JPY buyers to pass if they wish to keep the reins.
Following that, a run-up towards a seven-week-old horizontal resistance area around 135.20, can’t be ruled out.
In a case where the USD/JPY pair remains firmer past 135.20, the Year-To-Date (YTD) high of 137.91 should lure the bulls before highlighting the 140.00 psychological magnet.
On the contrary, the Yen pair’s pullback remains elusive unless the quote stays past an upward-sloping support line from January 16, around 131.00 by the press time.
Even if the USD/JPY bears manage to conquer the 131.00 trend line support, the previous monthly low of around 129.65 can act as an extra filter towards the south ahead of directing the moves to the early 2023 bottom of 127.21.
USD/JPY: Daily chart
Trend: Further upside expected
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