USD/JPY Price Analysis: Back above 134.00, as bulls moved in and crushed the 200-DMA

• USD/JPY rallies above 134.00 after breaking above the 200-day EMA.
• USD/JPY Price Analysis: Upward biased, though a daily close above the 200-DMA could cement the uptrend.

The USD/JPY rallies more than 100 pips and clears the 134.00 mark, breaking north of the 200-day Exponential Moving Average (EMA) at 133.77, a bullish/bearish bias measure for an asset. Hence, the USD/JPY shifted bullish during the session, though a daily close above the 200-day EMA would keep bulls hopeful for further upside. At the time of writing, the USD/JPY exchanges hand at 134.28 after hitting a low of 132.54.

From a daily chart perspective, the USD/JPY shifted upward biased after dropping from last year’s high of 151.94 towards the YTD low of 127.21 on January 16. Nevertheless, the USD/JPY needs to clear the confluence of the 100-day EMA and the YTD high at 134.77 to cement the uptrend.

The Relative Strength Index (RSI) and the Rate of Change (RoC) show that buyers are gathering momentum. Hence, the USD/JPY might test the 135.00 psychological level in the near term.

The USD/JPY 4-hour chart depicts the pair as bullish biased after breaking from the 131.70-133.00 consolidation range, eyeing to test the YTD high at 134.77. Even though the RSI shifted overbought, as long as it stays below 80, it portrays the USD/JPY in a strong uptrend. The RoC shows buyers are in control and might continue to ride the trend.

Therefore, the USD/JPY first resistance would be the YTD high at 134.77. A breach of the latter and the pair might get to 135.00, followed by 136.00, and then the December 19 daily high of 137.47.

USD/JPY 4-Hour chart

USD/JPY Key technical levels