USD/JPY Price Analysis: Yen pair retreats from five-month-old resistance to mid-137.00s

• USD/JPY prints the first daily loss in six around two-week high.
• Nearly overbought RSI conditions, key resistance line challenge Yen pair buyers.
• 200-DMA restricts immediate downside amid bullish MACD signals.

USD/JPY bulls take a breather around 137.50, the highest level in a fortnight, as market sentiment dwindles during early Thursday in Europe. In doing so, the Yen pair prints the first daily loss in six while easing from the downward-sloping resistance line from December 2022.

Not only the sluggish markets and the Yen pair’s inability to cross the key resistance line but the nearly overbought RSI (14) line also favors the quote’s latest pullback.

However, the 200-DMA puts a floor under the USD/JPY prices around the 137.00 round figure.

Following that, the 38.2% Fibonacci retracement level of the Yen pair’s fall from October 2022 to January 2023, near 136.65, may challenge the sellers.

In a case where the USD/JPY remains bearish past 136.65, an upward-sloping support line from March 24 and the 50-DMA, respectively near 134.50 and 133.80, will be in the spotlight.

On the contrary, the USD/JPY pair’s daily closing beyond the aforementioned resistance line, around 137.80 by the press time, needs validation from the 138.00 round figure and late 2022 peak of around 138.20.

Should the Yen pair buyers keep the reins above 138.20, the odds of witnessing a rally toward the 140.00 psychological magnet can’t be ruled out.

Overall, USD/JPY is likely to witness further pullback but the trend remains bullish.

USD/JPY: Daily chart

Trend: Bullish