USD/JPY Price Analysis: Retreats towards 136.00 as overbought RSI probes bulls
- USD/JPY pares intraday gains but defends the bullish breakout of 100-HMA.
- MACD signals, immediate support adds strength to the upside bias.
- Two-week-old horizontal hurdle appears crucial for further advances.
USD/JPY eases from intraday high as bulls struggle to stay beyond 136.00 amid overbought RSI conditions. However, the bulls keep reins as MACD signals remain firmer and the quote holds onto the early Asian session beak of the 100-HMA.
In addition to the 100-HMA support, at 135.80, an upward sloping trend line from Monday, near 135.75 by the press time, also challenges the USD/JPY pair sellers.
In a case where the yen pair drops below 135.75, a downward trajectory towards the 135.00 threshold can be expected.
Following that, the recent swing low near 134.70-75 will gain the USD/JPY seller's attention.
On the contrary, a two-week-old resistance area surrounding 136.70 appears an important challenge for the pair bulls to cross if they wish to refresh the multi-month top surrounding 137.00.
Should the quote remain past 137.00, multiple levels marked during mid-1998 could challenge the pair’s upside around 138.00 before directing the buyers towards the 140.00 round figure.
Overall, USD/JPY retreats from the intraday high and hints at a short-term pullback but the bullish trend remains intact.
USD/JPY: Hourly chart
Trend: Further upside expected