- USD/JPY picks up bids to snap three-day downtrend, stays within bullish chart formation.
- RSI rebound adds strength to the upside bias but bearish MACD signals, 139.80 hurdle prod Yen pair bulls.
- Multiple supports, recently upbeat market sentiment challenge Yen buyers.
USD/JPY picks up bids to refresh its intraday high near 139.50 as it prints the first daily gains in four during early Thursday. In doing so, the Yen pair recovers from the bottom line of a short-term bull flag formation.
That said, the RSI (14) line’s rebound from the below-50 region seems to underpin the USD/JPY pair’s latest recovery moves within the flag. However, the 50-SMA hurdle of near 139.50 joins the bearish MACD signals to challenge the bulls.
In a case where the USD/JPY pair manages to cross the 139.50 hurdle, the stated flag’s top-line surrounding 139.80 will be eyed closely as a break of which will confirm the bullish chart formation suggesting a theoretical target of around 146.50.
However, the 140.00 round figure and the yearly high marked on Monday near 140.45 can challenge the USD/JPY buyers before giving them control.
Also acting as an upside filter below 146.50 is the November 2022 high of near 142.25 and the last September’s peak of 145.90.
On the flip side, a clear break of the 139.00 immediate support will defy the bullish chart formation and can drag the USD/JPY price towards the mid-May swing high of near 138.75.
Following that, the 100-SMA level of near 137.85 may act as the last defense of the USD/JPY buyers.
USD/JPY: Four-hour chart
Trend: Further upside expected