USD/JPY Price Analysis: Bulls take a breather around 24-year high below 137.00

• USD/JPY dribbles around multi-year high as overbought RSI tests buyers.
• Last weekly top, seven-week-old resistance line guard immediate upside.
• Convergence of 20-SMA, fortnight-old support line restricts short-term declines.

USD/JPY dribbles around the highest levels since 1998, taking rounds to 136.60 during Thursday’s Asian session.

Although overbought RSI and nearly hurdles challenge intraday buyers, the yen pair remains on the bull’s radar after rising for four consecutive days.

That said, the previous multi-year high around 136.70, marked during the last week, appears to restrict the USD/JPY pair’s immediate upside.

Following that, the one-week-old ascending resistance line can challenge the bulls at around 137.00.

In a case where the USD/JPY remains firmer past 137.00, the 61.8% Fibonacci Expansion (FE) of June 16-23 moves, near 137.50, will be in focus.

On the contrary, the 20-SMA and an upward sloping support line from June 16 restrict immediate downside around 135.85. Also challenging the bears are the upbeat MACD signal and bullish RSI divergence.

It’s worth noting that the downside break of 135.85 won’t hesitate to direct USD/JPY bears toward the 100-SMA support of 134.90 while the last Thursday’s low around 134.25 could challenge the sellers afterward.

Overall, USD/JPY remains on the bull’s radar despite recent inaction around the multi-year top.

USD/JPY: Four-hour chart

Trend: Further upside expected