USDJPY falls from a five-month high to the mid-137.00

USDJPY suffers its first daily drop in six days near a two-week peak.

As market mood dwindles throughout early Thursday in Europe. USDJPY bulls take a breather at 137.50, the strongest level in a fortnight.

As a result, the Yen  pair suffers its first daily loss in six days, while easing off the downward-sloping resistance line established in December 2022.

RSI readings that are nearly overbought, as well as a critical resistance line, pose a challenge to Yen pair buyers.

Not only do slow markets and the USDJPY pair’s inability to pass the crucial resistance line favor the quote’s current decline, but so does the almost overbought RSI (14) line.

However, the 200-day moving average (DMA) acts as a floor for USDJPY values around the 137.00 round number.

The 38.2% Fibonacci retracement level of the Yen pair’s slide from October 2022 to January 2023, around 136.65, may then pose a challenge to the selling.

If the USDJPY continues negative beyond 136.65, an upward-sloping channel will form. The March 24 support line and the 50-DMA, both between 134.50 and 133.80, will be highlighted.

On the other hand, the USDJPY pair’s daily close above the aforementioned resistance line, which was about 137.80 at the time of publication, requires confirmation from the 138.00 round figure and late 2022 top of roughly 138.20.

If the USDJPY pair buyers hold the reins above 138.20, a surge towards the 140.00 psychological magnet is not out of the question.

Overall, the yen is expected to fall more, although the trend remains optimistic.

Technical levels