USD/JPY Price Analysis: Traces firmer yields to refresh yearly top, 141.60 in the spotlight

• USD/JPY jumps to the highest levels since November 2022, prints the biggest daily gains in a month.
• Upside break of previous yearly peak of around 141.00, looming bull cross on MACD favor Yen pair buyers.
• Overbought RSI, ascending resistance line from early March limit further upside.

USD/JPY bulls are high as the Yen pair renews the yearly peak near 141.45 amid early Thursday. In doing so, the risk-barometer pair prints the biggest daily gains, so far, in a month amid upbeat US Treasury bond yields.

That said, the US 10-year Treasury bond yields rise three basis points (bps) to 3.83% by the press time, versus the previous day’s lackluster move near a three-week top. While tracing the firmer bond coupons, the hawkish Fed bias and economic fears gain major attention.

Also read: USD/JPY looks to build on momentum beyond 141.00, highest since November 2022

On the other hand, sustained trading beyond the previous high of 2023, of around 141.00, enables the USD/JPY buyers to keep the reins, especially amid an impending bull cross on the MACD.

However, the nearly overbought RSI (14) line joins a three-month-old rising trend line, near 141.60 at the latest, to cap the pair’s immediate upside.

It should be noted that the late November 2022 high of near 142.25 and the 61.8% Fibonacci retracement level of the pair’s October 2022 to January 2023 fall, near 142.45, act as additional upside filters for the USD/JPY bulls to cross for conviction.

On the flip side, a one-month-old rising support line joins the 50% Fibonacci retracement level to limit the short-term downside of the USD/JPY pair near 139.55. Following that, the 200-DMA support of near 137.25 will be in the spotlight.

That said, the 141.00 mark and the 140.00 psychological magnet are extra supports to watch for the Yen pair traders.

USD/JPY: Daily chart

Trend: Limited upside expected