Buyers of USDJPY struggle to extend recent run-up to six-month highs.
USDJPY rises as it retests the annual high of 139.65-70 early Thursday. In doing so, the Yen pair approaches the 50% Fibonacci retracement level of its October 2022 to January 2023 decline. While the RSI (14) line is overbought.
Aside from the 50% Fibonacci retracement level at 139.60, the late November 2022 top of roughly 139.90, closely followed by the 140.00 round figure, also poses a challenge to the USDJPY bulls.
If the USDJPY pair maintains stronger over 140.00, the quote’s rise towards. A swing high of approximately 142.25 in late November cannot be ruled out.
However, the 61.8% Fibonacci retracement level at 142.50, often known as the golden Fibonacci ratio, may pose a further test to Yen pair buyers.
Meanwhile, the JPY decline remains elusive unless it breaches the prior resistance line that has been in place since December 2022, near to 137.80 at the very least.
Following that, the 200-day moving average (DMA) of approximately 137.20 may confront the Yen pair sellers before ceding control.
Nonetheless, the USDJPY bears may be prodded by a two-month-old rising support line at 134.90.
Overall, USDJPY is on the bull’s radar, even though the price is expected to fall.
