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Title: USD/JPY Price Analysis: Keeps pullback from three-week-old hurdle above 137.00


July 12, 2022 00:01 AM ET


By: AnalysisWatch


USD/JPY gives back recent gains to the highest level since 1998, marked the previous day, as intraday sellers flirted with 137.00 during Tuesday's Asian session. In the process, the quote posted its first daily loss in seven days while retreating from an upward resistance line from late June.


The yen pair's recent pullback is also supported by the near overbought RSI (14) and bearish MACD signals.


However, a five-week-old support line at 136.10 is in front of the 136.00 threshold and limits the immediate downtrend of USD/JPY. The 20-DMA, which was at 135.50 at the time of writing, also serves as short-term support.


It should be noted that a downtrend above 135.50 could pull the pair towards the mid-June low at 131.50.


Alternatively, an upside break of the nearby resistance line at 137.50 could strengthen the bullish bias.


In that case, the psychological 140.00 level and the mid-1991 high at 141.94 would come into focus.


Overall, USD/JPY remains on a bullish course, but a corrective pullback cannot be ruled out.

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