USD/JPY Gains Support Near 131.400 – Good to Buy Now?

 [[USD/JPY]] is trading lower towards the intraday low of 131.30 as bears test the short-term critical support during early Tuesday. As a result, the yen-pair prints a three-day downturn while supporting bearish MACD signals and the lack of an oversold RSI.

As a result, the USD/JPY price is anticipated to continue weak and might breach the one-week-old support line, which is near 131.30 at the time of writing. After sending Yen pair sellers to the recent low of around 129.50, the round number 131.00 and the psychological pull of 130.00 may amuse them.

The RSI (14) may become oversold when the USD/JPY reaches 129.50, triggering a corrective bounce; if not, the 61.8% Fibonacci Expansion (FE) of the pair’s advances between November 30, 2022, and January 3, 2023, close to 128.30, will be in focus.

On the other hand, recovery moves may first aim for the previous day’s peak of 132.65 before aiming for the late December 2022 swing high at 134.50. The 200-SMA and a downward-sloping resistance line from November 30, 2022, which was close to 135.00 at the time of publication, will be a tough nut to crack for USD/JPY bulls to retake control.