USD/JPY Price Analysis: 21-DMA guards immediate upside

• USD/JPY struggles with short-term moving average to extend post-Fed gains.
• Clear break of three-week-old resistance line keeps buyers hopeful to challenge November 2021 top.
• Downbeat Momentum line probes the pair’s further upside.
• 100-DMA, 50% Fibonacci retracement act as strong supports.

USD/JPY buyers attack 21-DMA to extend Fed-led gains during early Thursday.

The yen pair crossed a downward sloping resistance line from January 04, now support around 114.15, to refresh weekly high near 114.78. However, failures to cross the 21-DMA dragged the quote back to 114.65-60 by the press time.

In addition to the failures of the cross the 21-DMA, the downbeat Momentum line also probes USD/JPY buyers until the quote stays below 114.80 level comprising the stated short-term moving average.

If at all USD/JPY rises past 114.80, November’s peak of 115.52 and monthly top near 116.35 will be in focus.

Alternatively, pullback moves may initially aim for the previous resistance line near 114.15, a break of which will direct USD/JPY prices towards 38.2% Fibonacci retracement (Fibo.) level of September 2021 to January 2022 upside, at 113.60.

Though, the pair’s downside past 113.60 will be difficult as the 100-DMA and 50% Fibo., respectively around 113.40 and 112.75, appear tough nuts to crack for the pair bears.

USD/JPY: Daily chart

Trend: Pullback expected