USD/JPY Price Analysis: Yen bulls take a breather on their way to 134.50

• USD/JPY remains sidelined after rising to the highest levels in one month.
• Upbeat oscillators, clear break of the key DMAs keep Yen pair buyers hopeful.
• Descending resistance line from late October 2022 challenges USD/JPY bulls ahead of 200-DMA.
• Bears need validation from 133.25 to aim for three-month-long rising support line.

USD/JPY picks up bids to reverse the early Asian session pullback from a one-month high as it prints mild gains around 133.80 amid the initial hours of Wednesday’s European trading session.

In doing so, the Yen pair rises for the fifth consecutive day even as bulls pause around the multi-day top.

The quote’s latest run-up could be linked to the bullish MACD signals and the upbeat RSI (14) not overbought. More importantly, a clear upside break of the 100-DMA and 50-DMA convergence, near 133.35-25, keeps the USD/JPY buyers hopeful.

However, a downward-sloping resistance line from October 2022, around 134.50 by the press time, appears a tough nut to crack for the Yen pair buyers.

Following that, the 200-DMA hurdle of around 137.20 acts as the last defense of the USD/JPY bears.

On the flip side, a daily closing below the previously stated DMA confluence, near 133.35-25, could quickly drag the USD/JPY prices towards a three-month-long ascending support line, close to 131.10 at the latest.

Above all, a horizontal area comprising multiple lows marked since early January, near 129.50, becomes a crucial support for the USD/JPY bears to watch as a break of which can challenge the Year-To-Date (YTD) low of 127.21 marked in January.

USD/JPY: Daily chart

Trend: Limited upside expected