USD/JPY Price Analysis: Lacks direction between seven-week-old support and 50-DMA

• USD/JPY treads water after reversing from one-month high.
• Bullish MACD signals, sustained trading beyond previous resistance lines keep buyers hopeful.
• 50-DMA breakout could refresh yearly top and convince buyers to keep the reins.

USD/JPY retreats from intraday high as sellers attack 131.00 during the early hours of Wednesday’s European session. However, the Yen pair remains unchanged on a daily basis, after posting the biggest daily loss on reversing from the 50-DMA hurdle the previous day. In doing so, the USD/JPY pair reversed from the one-month high but failed to conquer a horizontal support area comprising multiple levels marked since December 20, 2022.

Not only the quote’s ability to stay beyond the seven-week-old horizontal support, near 130.50 by the press time, but successful trading beyond the previous resistance line from late November 2022, close to 129.35 at the latest, also keeps the USD/JPY buyers hopeful. Adding strength to the upside bias are the bullish MACD signals.

As a result, the pair is likely to overcome the immediate 50-DMA hurdle surrounding 132.40, which in turn could propel the USD/JPY price towards the previous monthly high of 134.77.

In a case where the quote remains firmer past 134.77, the late 2022 peak surrounding 136.70 and the 140.00 psychological magnet will be crucial to watch.

Alternatively, a downside break of the aforementioned horizontal support near 130.50 will need validation from the 130.00 round figure and the resistance-turned-support line from November, near 129.35, to convince USD/JPY bears.

Following that, a south-run towards the previous monthly low of near 127.20 can’t be ruled out.

USD/JPY: Daily chart

Trend: Further upside expected