USDJPY remains under pressure as it reverses from two-week-old horizontal resistance.
As the Yen pair falls to 135.95 in early Tuesday, the USDJPY remembers the selling after a two-day hiatus. In doing so, the Yen pair reverses a fortnight-long horizontal resistance. And breaks a three-day-old ascending support line, which is now immediate resistance.
Aside from the pullback from a short-term major barrier. And a downwards violation of the adjacent support trend line, bearish MACD indications and a downward-sloping RSI (14) line. That is not oversold kept Yen buyers optimistic.
The crucial barrier for Yen buyers to overcome and reclaim control looks to be 200-HMA.
As a result, the USDJPY pair is poised to challenge the 50% Fibonacci retracement level of its April 26 to May 02 upside, which is located at 135.40.
A confluence of the 61.8% Fibonacci retracement and the 200-Hourly Moving Average (HMA) between 134.90-85, however, looks a possibility. A difficult nut to crack for Yen pair sellers.
Following that, the 134.00 round figure and the monthly low of roughly 133.50 will pique the interest of USDJPY sellers.
On the other hand, USDJPY rebound remains elusive unless it breaks through a horizontal resistance zone comprised of peaks set since April 28, at 136.30-35.
Even if the Yen pair buyers manage to hold the reins above 136.35, the May and March highs of 137.80 and 137.90, respectively, may push the bulls before leading them to the 138.00 round figure.
