USD/JPY Price Analysis: Pokes 141.80-142.00 resistance zone on BoJ’s first special bond buying since February
- USD/JPY extends Friday’s recovery from four-month-old rising support line, grinds near intraday high of late.
- 21/50-DMA confluence, upbeat oscillators add strength to bullish bias as BoJ conducts the first bond buying since February.
- Multiple hurdles around 144.00 can test Yen pair buyers before directing them to yearly top.
- Sellers need validation from multi-day-old support line and US NFP to refresh monthly low.
USD/JPY stays on the front foot around 141.80 as it prods a six-week-old horizontal resistance during early Monday morning in Europe. In doing so, the Yen pair justifies the Bank of Japan’s (BoJ) firmer bond-buying operation since February.
Adding strength to the upside bias is the pair’s successful rebound from an upward-sloping support line from late March, as well as a daily closing beyond the 141.00 resistance-turned-support confluence comprising the 21-DMA and 50-DMA.
Furthermore, upbeat MACD signals and the RSI (14) line, not overbought, also add strength to the bullish bias about the Yen pair.
However, a daily closing beyond the aforementioned horizontal resistance area surrounding the 141.80-142.00 resistance area becomes necessary for the USD/JPY buyers to keep the reins.
Following that, a one-month-old horizontal region surrounding 144.00 can act as an intermediate halt before directing the Yen pair buyers toward the yearly top marked during late June around 145.00.
Meanwhile, pullback moves need validation from the aforementioned DMA confluence near 141.00, as well as the US Nonfarm Payrolls (NFP) data.
In a case where the USD/JPY bears dominate past 141.00 and the US jobs report disappoints, the multi-month-old rising support line of near 138.20 will be the last defense of the Yen pair buyers.
USD/JPY: Daily chart
Trend: Further upside expected