USDJPY dropped in the last two consecutive weeks but ended Friday on a positive note as it bounced off a convergence of the 100-DMA and the 200-DMA. Adding strength to the hopes of recovery is the oversold RSI and the pair’s closing beyond a seven-month-old horizontal support zone, around 137.90-138.20. That said, the 140.00 round figure appears immediate hurdle to cross for the Yen pair buyers to retake control, a break of which needs validation from the 61.8% Fibonacci retracement level of October 2022 to January 2023 downside, near 142.50, to confirm a bullish trend. In that case, the previous monthly high of 145.00 and 78.6% Fibonacci retracement level of near 146.70 hold the key for the run-up targeting the 150.00 psychological magnet and then toward the last yearly high of near 152.00.
Meanwhile, the aforementioned DMA convergence, surrounding 137.00, appears a tough nut to crack for the USDJPY bears. Following that, an ascending support line stretched from mid-January 2023, near 135.30, will act as the last defense of the Yen pair buyers. Should the risk-barometer pair remains bearish past 135.30, the 23.6% Fibonacci retracement and March’s low, respectively near 133.00 and 129.65, will be in the spotlight.
Overall, USDJPY bears seem running out of steam but the road toward the north appears long and bumpy.