USD/JPY Price Analysis: Yen buyers lurk around 134.00 support confluence on BoJ concerns

• USD/JPY rebounds from short-term key support confluence, struggles to extend week-start gains.
• 50-SMA, one-week-old ascending trend line resistances immediate downside; bulls need validation from 1.5-month-long horizontal area.
• Sluggish oscillators, key technical levels suggest Yen pair’s further grinding towards the north.

USD/JPY recovers from an intraday low of 134.00, near 134.25 by the press time, as the bulls struggle to defend the week-start gains amid sluggish Tuesday morning. In doing so, the Yen pair justifies comments from the newly appointed Bank of Japan (BoJ) Governor Kazuo Ueda in the Japanese parliament.

Also read: BoJ Ueda: It is reasonable to continue easing with YCC

Apart from the BoJ Governor Ueda’s defense of the easy money policy, a convergence of the 50-SMA and a one-week-old ascending trend line, around 134.00 by the press time, also triggers the USD/JPY pair’s rebound.

Given the steady RSI (14) and the sluggish MACD, the Yen pair is likely to extend the latest rebound from the key support.

However, a horizontal area comprising multiple levels marked since March 10, close to 135.05-15, appears a tough nut to crack for the USD/JPY bulls.

Following that, 135.50 and the 136.00 round figure could test the pair buyers ahead of directing them to the previous monthly top of around 137.90.

Alternatively, pullback moves remain elusive unless the quote stays beyond the 134.00 support confluence.

Even if the USD/JPY price breaks the 134.00 support, an upward-sloping trend line from April 05, around 133.65 at the latest, can prod the bears before giving them control.

USD/JPY: Four-hour chart

Trend: Further recovery expected