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Title: USD/JPY Price Analysis: Doji, 100-SMA probe bulls around 137.00

July 27, 2022 12:29 AM ET

By: AnalysisWatch

The USD/JPY gave up intraday gains at 136.95 early Wednesday morning in Europe, justifying the recent bearish doji. This sees the yen pair pull back from the 100-SMA in the midst of a three-day rally.

With the recent doji and the 100-SMA challenging the USD/JPY bulls, any upside momentum depends on the price's ability to break above the 137.15-SMA hurdle. Nevertheless, a two-week-old horizontal area at 137.90 could test the price's further progress.

It is worth noting that a downward resistance line from mid-July, located at 138.50 at press time, seems to be the last line of defense for the USD/JPY bears, the break of which could quickly push the pair towards the recent multi-year high at 139.40.

Alternatively, pullback moves could target the 50% and 61.8% Fibonacci retracement of the June 23-July 14 uptrend at 136.80 and 136.20, respectively.

Even if the price falls below 136.20, the 200-SMA level of 136.15 could pose a challenge to the USD/JPY bears.

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