USD/JPY Price Analysis: Buyers reclaim 130.50, and eye 131.00

• The USD/JPY post gains for two straight days and meanders around the 20-day EMA.
• USD/JPY Price Analysis: Range-bound capped around the 130.00-131.00 mark.

The USD/JPY prolonged its gains to two consecutive days on Monday, though it faltered to crack the 20-day Exponential Moving Average (EMA) at 130.91, which would pave the way for further upside. Nevertheless, as the Asian session begins, the USD/JPY is trading at 130.60, registering minuscule losses of 0.02%.

USD/JPY Price Analysis: Technical outlook

The USD/JPY tested the 20-day EMA during Monday’s session, though the pair retreated and closed at 130.64. However, the USD/JPY pair remains tilted to the downside, but it might consolidate around 131.00. This is because the Relative Strength Index (RSI), albeit at bearish territory, is almost flat, while the Rate of Change (RoC) portrays buyers gathering momentum.

For the USD/JPY to resume upwards in the near term, it needs to break January’s 18-daily high of  131.57. Break above will expose the 132.00 mark, followed by a falling slope resistance trendline around 132.18, followed by the 50-day EMA at 134.10. As an alternate scenario, if the downtrend resumes, the USD/JPY first support would be the January 23 daily low of 129.04, followed by January 16 at 127.21.

USD/JPY Key Technical Levels