- USD/JPY trades lower around 146.10, struggling to extend gains.
- MACD suggests that recent momentum is tepid as lies below the signal line.
- 147.00 psychological level emerges as the key resistance aligned to the previous week’s high.
USD/JPY struggles to extend the previous session’s gains, trading lower around 146.10 during the Asian session on Monday. The pair moves in sideways as traders adopt a cautious stance on monetary policy decision by the US Federal Reserve (Fed), following the mixed employment data from the United States (US) released on Friday.
The Moving Average Convergence Divergence (MACD) line remains above the centerline but lies below the signal line, which indicates that recent momentum is tepid.
The pair could face a challenge around 147.00 psychological level, followed by the area around the previous week’s high at 147.37.
On the flip side, the 14-day Exponential Moving Average (EMA) at 145.67 could act as immediate support, following the 21-day EMA at 145.19.
A firm break below the latter could inspire the USD/JPY sellers to navigate the region around 23.6% Fibonacci retracement at 144.98, following the 38.2% Fibonacci retracement at 143.50.
In the short term, the USD/JPY pair remains to be bullish as long as the 14-day Relative Strength Index (RSI) stays above 50.
USD/JPY: Daily Chart
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