USD/JPY Price Analysis: Pierces weekly resistance line to aim for 200-HMA
- USD/JPY picks up bids to refresh intraday high, snaps four-day downtrend.
- Firmer RSI, clear break of short-term resistance favor buyers.
- 200-HMA, 38.2% Fibonacci retracement restrict immediate upside, sellers need validation from 114.15.
USD/JPY consolidates weekly losses around 114.55 while heading into Thursday’s European session.
The yen pair recently crossed a downward sloping trend line from Monday to refresh intraday top. The bullish bias also gains support from the upbeat RSI line, not oversold.
As a result, the latest advances approach the 200-HMA level near 114.65 before challenging the 38.2% Fibonacci retracement (Fibo.) of January 24-28 upside, near 114.85.
Should USD/JPY bulls keep reins past 114.85, the 115.00 threshold and the weekly peak surrounding 115.55 should return to the charts.
Alternatively, pullback moves remain elusive until staying beyond the previous resistance line of 114.35.
Adding to the downside filters is seven-day-old horizontal support near 114.15, a break of which will not hesitate to direct USD/JPY prices toward 113.50.
Overall, USD/JPY is up for fresh advances as sour sentiment underpins US dollar recovery.
USD/JPY: Hourly chart
Trend: Further recovery expected