USD/JPY Price Analysis: Recovery needs validation from 136.50 hurdle

• USD/JPY picks up bids to defend the previous day’s recovery moves.
• Clear break of immediate resistance line, bullish MACD signals favor buyers.
• 100-HMA, previous support line from late February restricts the immediate upside.
• Multiple hurdles stand ready to challenge bulls below 137.10 final challenge.

USD/JPY holds onto the week-start recovery as it prints mild gains around 136.10 during Tuesday’s Asian session.

In doing so, the Yen pair justifies the previous day’s upside break of a three-day-old resistance line, now support near 135.90.

Apart from the trend line breakout, the bullish MACD signals also keep the USD/JPY buyers hopeful as they approach the 100-Hour Moving Average (HMA) hurdle of 136.20.

Following that, the support-turned-resistance line from February, near 136.50 by the press time, could challenge the USD/JPY pair’s further advances.

It’s worth noting that there are multiple levels around 136.60 and 137.00, marked during late February and early March, which can probe the USD/JPY bulls before directing them to the final defense of the bears, namely the previous weekly top of 137.10.

In a case where the Yen pair remains firmer past 137.10, the odds of witnessing a run-up toward the December 2022 peak of 138.17, can’t be ruled out.

Meanwhile, pullback moves remain elusive unless the USD/JPY pair remains beyond the previous resistance line from last Thursday, close to 135.90.

In a case where the Yen pair drops below 135.90, it can drop to a one-week-old ascending trend line near 135.40 will be in focus.

Overall, USD/JPY is likely to remain firmer but the pair’s further upside needs validation from 136.50.

USD/JPY: Hourly chart

Trend: Limited upside expected