USD/JPY Price Analysis: Seesaws nearby the YTD high, around 136.20s

• The USD/JPY printed a new YTD high and would test 137.00, achieving a daily close above 136.00.
• The 20-DMA crossing above the 50-DMA exacerbated the USD/JPY Friday’s rally above 136.00.

The USD/JPY drops from around YTD highs around 136.55 and hits a daily low of 135.91 before reclaiming the 136.00 figure on Monday. At the time of typing, the USD/JPY falls 0.29%, trading at around 136.20s, underpinned by US bond yields, namely the 10-year benchmark note rate, down three basis points (bps) at 3.918%.

After breaking the year’s previous high at 134.77, the USD/JPY printed another leg-up to the new YTD high at 136.55 before aiming toward the current spot price. From a technical perspective, the USD/JPY is still upward biased, backed by the Relative Strength Index IRSI) in bullish territory and the Rate of Change (RoC), suggesting that in the last three days, buyers have emerged.

Also, the 100-day Exponential Moving Average (EMA) was the last solid resistance level at 134.79, which, once conquered, exacerbated a 160 pip rally to the new YTD  high. Traders should be aware that the 20=day EMA at 133.46 crossed above the 50-day EMA at 133.36. Hence, the USD/JPY could accelerate as the 20-day EMA closes the 200-day EMA At 133.86.

As the USD/JPY path of least resistance is upwards, the pair’s next ceiling level would be the 137.00 figure. Break above will expose the December 20 daily high of 137.47 before putting into play the December 15 high at 138.02. As an alternate scenario, the USD/JPY first support would be the 136.00 figure, ahead of today’s low at 135.91.

USD/JPY Daily chart

USD/JPY Key technical levels