USD/JPY Price Analysis: Buyers lurk around 133.60 support confluence

• USD/JPY snaps three-day uptrend as it retreats from six-week high.
• Convergence of one-month-old previous support line, ascending trend line from the last Friday challenges bears.
• Firmer oscillators add strength to the upside bias while 200-SMA acts as additional downside filter.

USD/JPY prints the first loss-making day in four as bulls take a breather around the 1.5-month high during early Thursday. In doing so, the Yen pair flirts with the 133.60 support confluence heading into the European session.

Although the overbought RSI (14) triggered the USD/JPY retreat, a convergence of the resistance-turned-support line from January 18 and a one-week-old ascending trend line challenges the Yen pair sellers around 133.60. On the same line are the bullish MACD signals and the pair’s higher-low formation on the Daily chart.

It’s worth noting, however, that the quote’s further recovery needs validation from the 134.00 round figure to challenge the latest high of 134.35.

Following that, the previous peak of around 134.80 and the December 2022 top near 138.20 will be in focus.

On the flip side, a clear break of the 133.60 support confluence can quickly drag the USD/JPY price towards the 200-Simple Moving Average (SMA) support of 130.70.

Should the quote remains weak past 130.70, the 130.00 round figure and the previous weekly bottom surrounding 129.80 could please the USD/JPY bears before directing them to the one-month-old ascending support line, close to 129.00 by the press time.

Overall, USD/JPY remains on the bull’s radar despite the latest pullback from the multi-day high.

USD/JPY: Four-hour chart

Trend: Limited downside expected