USD/JPY Price Analysis: Re-testing weekly highs, shy of the 20-DMA

• USD/JPY remains sideways, trapped within the 129.00/131.00 range.
• Buyers are unable to conquer the 20-day Exponential Moving Average, and keep the USD/JPY pair range-bound.
• USD/JPY Price Analysis: Remains exposed to selling pressure, as its bias is still downwards.

The USD/JPY bounces from weekly lows reached early Thursday at 129.02 and reclaimed the 130.00 psychological level, eyeing a test of the 20-day Exponential Moving Average (EMA) at 130.70. Nevertheless, the USD/JPY fell short and hit a daily high at 130.61, settling around current exchange rates. At the time of writing, the USD/JPY is trading at 130.34.

USD/JPY Price Analysis: Technical outlook

Although USD/JPY buyers are staging a comeback late in the week, they have been unable to crack the 20-day EMA, which exposes the pair to selling pressure. Traders should be aware that long term, the USD/JPY remains downward biased, and it can shift to neutral if buyers reclaim the January 11 high of 131.57.

Failure to crack the 20-day EMA paves the way for a bearish continuation. Therefore, the USD/JPY first support would be the psychological 130.00 figure, followed by a test of this week’s low of 129.02. A breach of the latter and the USD/JPY might fall toward the year-to-date (YTD) low of 127.21, hit on January 16.

USD/JPY Key Technical Levels