USD/JPY Approaches Intraday High Amid Downbeat Start to the Week, Recovery Faces Hurdles

USD/JPY approaches an intraday high of approximately 132.80 during early Tuesday trading, after a subdued start to the week. The Yen pair...

Arslan Butt•Tuesday, April 4, 2023•1 min read

[[USD/JPY]] approaches an intraday high of approximately 132.80 during early Tuesday trading, after a subdued start to the week. The Yen pair rebounds from a convergence of the 100-bar Simple Moving Average (SMA) and a one-week ascending trend line, reversing the previous day’s losses.

Despite the Yen pair’s recovery from the 132.30 support confluence, bearish MACD signals and the inability to surpass the 200-SMA around 134.00 at the time of writing pose challenges for the bulls.

If the USD/JPY breaks through the 134.00 barrier, a six-week-long horizontal resistance area near 135.10 may limit further gains. It is important to note that the round figures of 135.40 and 136.00 also act as additional barriers to the upside.

If the pair remains strong above 136.00, the possibility of reaching a new Year-To-Date high, currently around 137.90, cannot be dismissed.

Conversely, a definitive break below the 132.30 support confluence is essential for the USD/JPY bears to regain control.

However, the 61.8% Fibonacci retracement level of the USD/JPY pair’s February-March gains and the 50-SMA, close to 131.80, could serve as the buyers’ last line of defense.

Following that, the 130.00 round figure and the previous month’s low near 129.65 may attract the attention of USD/JPY sellers.

In summary, the USD/JPY is likely to prolong its recent rebound, although the scope for recovery

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.