USD/JPY Price Analysis: Pullback from 200-HMA eyes 134.75 support confluence

• USD/JPY fails to defend two-day uptrend as 200-HMA prods buyers.
• Convergence of 100-HMA, two-week-old ascending trend line restricts short-term Yen downside.
• Steady RSI suggests continuation of slower grind towards the north.
• Bears have a bumpy road towards the south with 133.50 acting as immediate key support.

USD/JPY pares intraday gains around 135.10-05 during early Tuesday, pausing a two-day winning streak. In doing so, the Yen pair retreats from the 200-Hour Moving Average (HMA).

Also read: USD/JPY bulls cross 135.00 as BoJ’s Ueda defends monetary policy inaction, yields rise

In addition to a pullback from the 200-HMA, the steady RSI (14) line also favors the short-term weakness in the Yen pair prices. However, a convergence of the 100-HMA and a fortnight-old ascending trend line, close to 134.75 by the press time.

In a case where the USD/JPY bears manage to conquer the 137.75 key support, the previous weekly low of around 133.50 holds the key to the Yen pair’s slump toward the April month’s bottom of around 130.65.

Alternatively, a clear upside break of the 200-HMA, around 135.35 at the latest, has fewer hurdles toward the north unless the quote hits the 136.00 round figure.

Following that, multiple tops around the 137.90-138.00 area will be crucial to watch for the USD/JPY pair buyers as a sustained break of the same won’t hesitate to prod the 140.00 psychological magnet.

Overall, USD/JPY remains on the buyer’s radar even if a short-term pullback appears more likely.

USD/JPY: Hourly chart

Trend: Further recovery expected