The USD/JPY currency pair is currently maintaining its position near the intraday low of approximately 141.50, marking the end of a three-day streak of gains and a pullback from the Year-To-Date (YTD) peak as Monday’s European session begins.
This retracement justifies the decline of the RSI (14) indicator from the overbought zone. At the same time, a resistance line from three weeks ago is combining with bullish signals from the MACD to challenge the selling pressure faced by USD/JPY at around 141.40.
Further downward movement could be curtailed by an ascending trend line originating from last Wednesday, situated near 141.20, and the 100-Exponential Moving Average (EMA) at 139.70. Additionally, the psychological level of 140.00 adds an extra support barrier in the short term.
Even if the USD/JPY pair drops below the support at 139.70, the bulls’ last defense could be found at the high reached in early May, approximately 137.75, as well as an ascending trend line from April 26, which is located around 136.50.
Conversely, the immediate upside for USD/JPY faces resistance at the round figure of 142.00, followed by the high from November 2022, around 142.20-25.
Should the Yen pair gain strength beyond 142.25, the possibility of an upward move towards the low recorded in late October 2022, around 145.10, cannot be dismissed.
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