USDJPY reverses from a three-week-old horizontal hurdle. 200-SMA approaching the horizontal bar, heading into the 133.00 zone.

USDJPY’s RSI’s reversal from overbought levels strengthens the downward tilt

As bulls rest after a three-day rise during early Tuesday, USDJPY falls to 133.40. The Yen duo does a U-turn from the 200-SMA and a three-week-old horizontal resistance region as a result.

The Yen duo is therefore poised for additional declines into the 132.40-35 support level. Which includes the 50-SMA and a rising trend line that has been in place for one week.

Technical outlook possibilities

But even if it breaches the crucial support mark of 132.35, the USDJPY pair still has little leeway to move south. An ascending support line from March 24 was at 131.10, which might be the cause.

It is possible that the USDJPY may drop to a new bottom for 2023, which is now at 127.20. If the bears maintain control of the pair beyond 131.10 and also take down the 131.00 round number.

The USDJPY pair’s immediate upward is instead constrained by the 200-SMA level of 133.60. Which comes before the earlier three-week-old horizontal resistance range encompassing 133.75-85. The mid-March high of 135.05 then serves as a temporary pause in the expected advance towards the YTD peak reached in the previous month close to the 137.95 zone.

In his inaugural address, Ueda (BOJ) warned of any significant policy changes. And stated that a quick relaxation of monetary policy should be avoided since it would have a significant effect on the markets. This also has a significant impact on the JPY

Summary USDJPY