USDJPY picks up bids within a fortnight-old trading range while defending the previous day’s rebound from a 150.80-90 support confluence, comprising the 21-day Exponential Moving Average (EMA) and multiple levels marked in the last two months. The Yen pair’s recovery also justifies the upbeat RSI (14) line and inspires buyers to poke an upward-sloping resistance line stretched from late October 2023, close to 152.00 by the press time. However, the impending bear cross on the MACD challenges the quote’s further upside. In a case where the pair remains firmer past 152.00, the 61.8% Fibonacci Extension (FE) of its moves between December 2023 and March 2024, near 153.10, will be on the bull’s radar ahead of the 78.6% FE level surrounding 154.85.
Meanwhile, the USDJPY pair’s daily closing beneath the 150.80 support confluence will need validation from the 38.2% FE level of 150.55 and the 150.00 threshold. Following that, January’s peak surrounding 148.80 and the previous monthly low near 146.50 could lure the Yen pair sellers. It’s worth noting that February’s bottom of 145.90 acts as the final defense of the pair buyers, a break of which will make the quote vulnerable to drop toward the 140.00 psychological magnet.
Overall, the USDJPY is likely to remain firmer but the buyers appear running out of steam and hence this week’s US inflation data, namely the Consumer Price Index (CPI) for March, will be crucial to watch for clear directions.
