USD/JPY Price Analysis: Bulls approach 133.60 hurdle ahead of BOJ
|- USD/JPY takes the bids to refresh daily top, snaps a two-day downtrend.
- Weekly horizontal resistance, descending trend line from Tuesday test buyers.
- MACD, RSI hints at further recovery moves until the quote stays beyond 100-SMA.
- BOJ is widely anticipated to keep the monetary policy intact.
USD/JPY extends the bounce off weekly low while refreshing intraday high around 133.30 during Friday’s Asian session.
In doing so, the yen pair stretches the bounce off 100-SMA while approaching a one-week-old horizontal resistance area, surrounding 133.50-60.
Given the RSI rebound from the oversold territory, coupled with the receding bearish bias of the MACD, the USD/JPY prices are likely to defend the latest recovery.
However, a downward sloping resistance line from Tuesday, around 133.95, as well as the 134.00 threshold, will act as additional upside filters, other than the immediate 133.50-60 zone, to challenge the pair buyers.
Also, the Bank of Japan (BOJ) is likely to keep its easy-money policy untouched and may add strength to the USD/JPY upside.
Read: BOJ set to maintain ultra-low rates, sound warning over weak yen
Alternatively, pullback moves may remain elusive until the quote stays beyond the 100-SMA level of 131.40.
Following that, the 200-SMA and the early June swing high, around 130.25-20, could challenge the USD/JPY bears.
USD/JPY: Four-hour chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.