USD/JPY Price Analysis: Yen pair retreats from six-month high near 138.50 amid overbought RSI

• USD/JPY snaps six-day uptrend at the highest levels since November 2022, struggles to defend Yen buyers of late.
• Short-term support lines, previous resistance from March challenge pair sellers.
• Pair buyers may witness bumpy road unless crossing 140.00.

USD/JPY prints the first daily loss in seven days around 138.50 even as bears struggle during early Friday amid the market’s indecision. In doing so, the Yen pair prods a four-day-old ascending support line, as well as short-term ascending trend lines, to challenge the Yen pair sellers.

That said, the USD/JPY pair’s latest retreat could be linked to the overbought RSI (14) line, as well as the cautious mood ahead of Federal Reserve (Fed) Chairman Jerome Powell’s speech and US debt ceiling negotiations. However, bullish MACD signals keep the Yen pair firmer at the highest levels since November 2022.

With this, the USD/JPY remains on the bull’s radar but the four-day ascending trend line and a one-week-old rising support line, respectively near 138.15 and 137.15, restrict short-term pullback of the pair.

Following that, a quick drop toward the 200-SMA level of 134.50 can’t be ruled out. However, the previous weekly top surrounding 135.50 may offer an additional filter towards the south of 137.15.

Meanwhile, the USD/JPY pair’s fresh recovery can aim for the latest peak of 138.75, a break of which could propel the quote towards refreshing the yearly high near 139.00.

Though, late November 2022’s top near 139.90 and the 140.00 round figure could challenge the Yen pair buyers before giving them full authority.

USD/JPY: Four-hour chart

Trend: Bullish