- USD/JPY fades bounce off one-week-old ascending support line.
- Looming bull cross on MACD teases buyers but 13-day-old downward-sloping trend line appears the key hurdle.
- Weekly horizontal region acts as an extra filter towards the south.
USD/JPY grinds near the intraday high surrounding 137.00, retreating of late, as buyers jostle with the 200-HMA during early Thursday.
In doing so, the Yen pair struggles to extend the early-day rebound from a weekly support line, around 136.30 by the press time.
However, the impending bull cross on the MACD indicator suggests the USD/JPY pair’s upside past the immediate hurdle comprising the 200-HMA near 137.00.
Even so, the pair buyers remain confused unless the quote trades below a descending resistance line from November 21, close to 137.55 at the latest.
The weekly high of 137.85 also acts as an additional upside filter, a break of which could quickly propel the USD/JPY prices towards the November-end swing high near 139.90.
On the flip side, USD/JPY sellers may remain confused unless providing a clear break of an immediate support line, close to 136.30, as well as a one-week-old horizontal support region near 135.95-85.
Following that, a south-run towards the monthly low near 133.60 can’t be ruled out.
Overall, USD/JPY is likely to witness a corrective bounce but the upside room appears to be limited.
USD/JPY: Hourly chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.