- USD/JPY picks up bids to portray a rebound from 12-day low, 38.2% Fibonacci retracement level.
- Bearish MACD signals, break of ascending trend line from March favor sellers.
- 100-SMA, the peak of April 20 constitute key short-term resistance.
- 200-SMA, late April’s swing low act as additional downside filters.
USD/JPY recovers from a fortnight low, snaps two-day downtrend, as it regains 128.50 during the initial hour of Tokyo open on Friday.
The yen pair’s latest run-up could be linked to the failure to break the 38.2% Fibonacci retracement (Fibo.) level of March 31 to May 09 upside. However, bearish MACD signals and sustained trading below the previous support line from late March, around 130.70 by the press time, keep sellers hopeful.
That said, the current upside momentum eyes 129.50 level, a confluence of the 100-SMA and April 20 high.
Following that, the 130.00 round figure and the support-turned-resistance line near 130.70 will be crucial to watch for further USD/JPY advances.
Should the quote rises past 130.70, the odds of it refreshing the latest multi-month high of 131.34 can’t be ruled out.
Alternatively, pullback moves may initially aim for the 38.2% Fibo level surrounding 127.50 before the 200-SMA challenge the USD/JPY sellers near 127.10. Also likely to test the pair’s further downside is the late April bottom close to 126.90.
Hence, USD/JPY moves aren’t likely to be entertaining until staying between 126.90 and 129.50.
USD/JPY: Four-hour chart
Trend: Pullback 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD slips back below 1.0900 on poor US Retail Sales
EUR/USD now gives away part of the earlier advance and retests the area below 1.0900 the figure on the back of the mild bounce in the US Dollar after US Retail Sales disappointed expectations in February. In the meantime, prudence among traders is expected to pick up in light of the FOMC event on Wednesday.
GBP/USD treads water near 1.2970, USD remains offered
GBP/USD resumes its recent uptrend and navigates around the 1.2970 region at the beginning of the week on the back of the renewed selling pressure hurting the Greenback. Investors' focus, in the meantime, remains on the BoE meeting due later in the week.
Gold keeps the bid tone unchanged near $3,000
Gold prices has started the week on a positive tone and maintains their trade around the key $3,000 mark per troy ounce on the back of the modest pullback in the Greenback and mixed US yields across the curve,
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium
Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Federal Reserve.
Top Formula 1 crypto sponsors rally, racing fans gain from Binance Coin, OKB, ApeCoin and Crypto.com
The 2025 Formula 1 season kicked off in Australia last week with a lineup of crypto sponsors for half of the teams. Racing giants are powered by sponsors like crypto exchanges Binance, OKX, ApeCoin, and Crypto.com, among other NFT and trading platforms. Binance Coin, OKX, ApeCoin, Crypto.com, and Alchemy Pay’s tokens rallied as crypto sponsors made their mark in the racing event.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.