USD/JPY Trades Near Weekly Low, Struggling to Break Above 138.00 Amid Bearish Indications

Early Thursday trade has shown that the USD/JPY is maintaining a position at the weekly low of roughly 134.50. The Yen has fallen for three days in a row, and it is currently trading near its 21-day Exponential Moving Average (EMA) and an ascending support line from March 24.

Bears on the USD/JPY pair remain bullish due to the Yen’s inability to sustain a daily closing above 138.00 and the pair’s subsequent retreat moves that breached the prior support zone around 135.25-15, which had been in place since mid-February.

The imminent bear cross on the MACD also suggests further downward momentum.

Near the 134.50-40 support area, however, the 21-day EMA and an ascending support line dating back five weeks present a challenge to Yen pair sellers.

As a result, the area around 133.85, where the 50-day EMA meets the 200-day EMA, will be quite significant for the USD/JPY pair.

Short-term bulls need confirmation from the immediate multi-day resistance zone around 135.15-25 before they can get excited about buying USD/JPY.

However, USD/JPY buyers may be challenged by several barriers near 136.70, the 137.00 round figure, and the 138.00 threshold before they are granted control.