USDJPY remains on the way to posting the second consecutive weekly loss after reversing from the yearly top in the last week. In doing so, the Yen pair justifies the overbought RSI (14) line. However, a six-month-old horizontal support zone near 137.90-85 and the 200-DMA level surrounding 137.30 appear tough nuts to crack for the sellers to retake control. Following that, a gradual south-run toward the 61.8% Fibonacci retracement of its May-October 2022 upside, near 136.10 and then to the previous monthly low of around 133.50 can’t be ruled out.
On the contrary, USDJPY recovery needs validation from the yearly latest peak of 140.95, as well as the 141.00 round figure, to convince buyers. It’s worth noting that the 140.00 psychological magnet caps the immediate upside of the Yen pair whereas a convergence of the one-month-old upward-sloping resistance line and 38.2% Fibonacci retracement, near 142.15-20, can challenge the quote’s run-up beyond 141.00. In a case where the risk-barometer pair rises past 142.20, the late October 2022 low close to 145.10 will be in the spotlight.
Overall, USDJPY is likely to witness short-term selling pressure but the trend remains bullish until the quote stays beyond 137.30.
