USD/JPY Price Analysis: Rallies and stalls around the 20-DMA, as buyers target 134.00

• A four-month-old downslope trendline break could shift the USD/JPY bias to upwards.
• USD/JPY Price Analysis: Neutral biased, but could turn bullish above the 200-DMA.

The USD/JPY advance towards the 20-day Exponential Moving Average (EMA) as Friday’s Asian Pacific session begins, though it remains shy of piercing the 133.82 area, following Thursday’s 0.60% gain. At the time of typing, the USD/JPY is trading at 133.42

USD/JPY Price Analysis: Technical outlook

From a technical perspective, the USD/JPY shifted its bias from downward to neutral biased. After the USD/JPY bottomed around 129.50, the major rallied 3% and reclaimed the 133.00 figure. Additionally, it’s testing a four-month-old downslope trendline drawn from 2022 highs above 150.00, which, once broken, could open the door for a test of the 200-day Exponential Moving Average (EMA) at 134.81.

However, the Relative Strength Index (RSI) remains in bearish territory, almost flat, while the Rate of Change (RoC) shows buyers are beginning to gather impulse. Unless the RSI slope aims upward, traders might refrain from opening fresh long positions in the USD/JPY.

The USD/JPY key resistance levels are the 20-day EMA at 133.82, short of the 134.00 figure. A breach of the latter will expose the 200-day EMA at 134.81, followed by the 50-day EMA at 136.82. As an alternate scenario, the USD/JPY support levels would be the four-month-old downslope trendline turned support around 133.00, followed by the January 5 low of 131.68. Once cleared, the next support would be the YTD low of 129.50.

USD/JPY Key Technical Levels