USD/JPY Price Analysis: Bears appear exhausted near 137.00 DMA confluence

USD/JPY portrays corrective bounce after refreshing two-month low.
Oversold RSI conditions trigger rebound ahead of 100-DMA, 200-DMA convergence.
Bearish MACD signals, clear break of previously important support line keep Yen pair sellers hopeful.
Six-month-old rising support line will act as the last defense of bears past 137.00.

Anil Panchal FXStreet

USD/JPY rebounds from the lowest levels in two months while paring intraday loss near 137.70 heading into Friday’s European session. In doing so, the Yen pair justifies oversold RSI conditions despite being in the red for the seventh consecutive day.

Apart from the oversold RSI (14) line, a convergence of the 100-DMA and 200-DMA, around 137.00 by the press time, also challenges the USD/JPY bears in keeping the reins.

However, Wednesday’s downside break of the previously key support line stretched from April, now immediate resistance near 139.50, joins the bearish MACD signals to keep the USD/JPY sellers hopeful.

Hence, the quote’s corrective bounce remains elusive below 139.50, a break of which will recall the 140.00 round figure to the chart.

However, the 61.8% Fibonacci retracement of its October 2022 to January 2023 downturn and a 10-month-old horizontal resistance area, respectively near 142.50 and 144.85-145.00, appear tough nuts to crack for the USD/JPY bulls past 140.00.

On the flip side, a daily closing beneath the aforementioned DMA confluence surrounding 137.00 will make the Yen pair vulnerable to testing an upward-sloping support line from mid-January 2023, close to 135.40 by the press time.

In a case where the USD/JPY remains bearish past 135.40, the odds of witnessing a gradual south-run toward the 130.00 psychological magnet can’t be ruled out.

USD/JPY: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	137.68
Today Daily Change	-0.37
Today Daily Change %	-0.27%
Today daily open	138.05

Trends
Daily SMA20	142.79
Daily SMA50	139.99
Daily SMA100	136.96
Daily SMA200	137.16

Levels
Previous Daily High	138.96
Previous Daily Low	137.92
Previous Weekly High	144.91
Previous Weekly Low	142.07
Previous Monthly High	145.07
Previous Monthly Low	138.43
Daily Fibonacci 38.2%	139.01
Daily Fibonacci 61.8%	139.54
Daily Pivot Point S1	137.64
Daily Pivot Point S2	136.78
Daily Pivot Point S3	135.4
Daily Pivot Point R1	139.88
Daily Pivot Point R2	141.25
Daily Pivot Point R3	142.11

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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