• USD/JPY extends the previous day’s rebound to refresh weekly top.
• Ascending trend channel, bullish RSI divergence keep buyers hopeful.
• 61.8% FE, channel’s resistance challenge bulls, 100-SMA acts as additional downside filter.

USD/JPY remains on the front foot around the weekly top surrounding 130.50 during Friday’s Asian session. The yen pair’s latest gains could be well linked to the market’s rush to risk safety and Japan’s return from holidays.

Technically, hidden bullish divergence of the RSI and USD/JPY prices join a 13-day-old rising channel to underpin the latest run-up.

The aforementioned divergence takes place when prices make higher high but the indicator, here RSI, prints lower low. The divergence hints at a gradual pick-up in the upside momentum backed by the buyer’s confidence.

That said, the quote is well-directed towards the previous monthly top near 131.15. However, a convergence of the stated channel’s upper line nad 61.8% Fibonacci Expansion (FE) of April 14 to May 04 upside, around 132.50, appears a tough nut to crack for the USD/JPY bulls.

Alternatively, pullback moves remain elusive beyond the channel’s support line, close to 129.00 by the press time. Also acting as the key support is the 100-SMA level near 128.55.

Overall, USD/JPY maintains the bullish trajectory but will be tested for further advances soon.

USD/JPY: Four-hour chart

Trend: Further upside expected