USD/JPY seesaws around intraday high near 134.40 as bulls keep the reins for the third consecutive day amid early Tuesday morning in Europe. In doing so, the Yen pair also prints mild gains near the highest levels in two months, poked on Friday.

That said, the 200-day Exponential Moving Average (EMA) joins an upward-sloping trend line from February 02 to restrict the USD/JPY pair’s immediate downside near 133.80. However, the 100-day EMA level surrounding 134.75 guards nearby the upside.

It’s worth noting, however, that the bullish MACD signals and higher low bullish formation on the daily chart keep the USD/JPY pair buyers hopeful.

That said, the recent top surrounding 135.10, marked on Friday, acts as an extra filter towards the north past 100-day EMA.

Following that, a run-up towards mid-December 2022, close to 138.20, can’t be ruled out. Though, the 140.00 psychological magnet may challenge the Yen pair buyers afterward.

Meanwhile, a downside break of the 133.80 support confluence could quickly drag the USD/JPY price towards an early month swing high near 132.90.

Though, multiple levels near 31.30-20 and the 130.00 round figure could challenge the USD/JPY pair’s downside past 132.90.

In a case where the quote remains bearish below 132.90, the previous monthly low of 127.21 will be in the spotlight.

In the meantime, the FOMC meeting minutes, due for release on Wednesday, will be looked upon for fresh clues about the US central bank's rate-hike path. This will play a key role in influencing the near-term USD price dynamics and help determine the next leg of a directional move for the USD/JPY pair. Ahead of the key event risks, the flash US PMI prints might produce short-term opportunities later during the early North American session this Tuesday.

USDJPY likely to retreat from WEMA200 for correction

Feb 21 2023