USD/JPY Price Analysis: Bears keep the reins near 134.50, further downside appears limited
- USD/JPY prods short-term key support confluence during three-day downtrend, stays pressured at weekly low.
- 21-day EMA, five-week-old ascending trend line restricts immediate downside.
- Convergence of 50-day EMA, 200-day EMA, appears a tough nut to crack for Yen pair sellers.
- Bulls need validation from 135.25 to convince short-term buyers.
USD/JPY holds lower ground near the weekly bottom surrounding 134.50 during early Thursday. In doing so, the Yen pair drops for the third consecutive day while proding the 21-day Exponential Moving Average (EMA) and an upward-sloping support line from March 24, near 134.40-50.
It’s worth noting that the Yen pair’s repeated failures to provide a daily closing beyond 138.00 join the pair’s pullback moves that broke the previous support zone around 135.25-15, comprising levels marked since mid-February, to keep the USD/JPY bears hopeful.
On the same line, the looming bear cross on the MACD adds strength to the downside bias.
However, the 21-day EMA and a five-week-old ascending support line prod the Yen pair sellers near 134.50-40 support confluence.
Following that, a convergence of the 50-day EMA and 200-day EMA, near 133.85, will be key to watch for the USD/JPY pair as it holds the gate for the bear’s welcome.
Meanwhile, USD/JPY buyers need validation from the immediate multi-day resistance zone of around 135.15-25 to convince short-term bulls.
Even so, multiple hurdles near 136.70, the 137.00 round figure and the 138.00 threshold can prod the USD/JPY buyers afterward before giving them control.
USD/JPY: Daily chart
Trend: Corrective bounce expected