- USD/JPY remains near the highest levels in 20 years following the recent bounce off intraday low.
- Short-term resistance line, sluggish RSI conditions challenge recent rebound.
- Weekly support line and 200-HMA challenge bears amid recently bullish MACD signals.
USD/JPY picks up bids to pare the previous day’s losses around 130.00 on Monday. Even so, the yen pair remains below the 50-HMA, as well as a downward sloping trend line from Thursday.
Given the sluggish RSI conditions and recently bullish MACD signals posing a dilemma for traders, the latest rebound needs validation from the 130.25-30 resistance confluence, comprising the 50-HMA and the aforementioned descending trend line, to lure the USD/JPY bulls.
Following that, the latest multi-month high around 131.25 and the yearly high of 2002 surrounding 135.15 will be in focus.
Meanwhile, pullback moves remain elusive until staying beyond the one-week-old support line, at 129.50 by the press time. Also challenging the USD/JPY sellers is the 200-HMA level of 128.67.
It’s worth noting, however, that the USD/JPY pair’s weakness past 200-HMA will trigger the downside momentum towards the 2015 high close to 125.85.
Overall, USD/JPY prices are likely to remain firmer but the further upside hinges on the 130.30 breakout.
USD/JPY: Hourly chart
Trend: Further upside expected