• USD/JPY retreats after posting the highest daily close in 20 years.
• MACD, RSI hints at further upside but a clear break of 131.00 becomes necessary for bulls.
• Convergence of 10-DMA, 20-DMA precedes three-month-old support line to restrict short-term declines.

USD/JPY takes offers to renew the intraday low around 130.55 as the yen pair prints one more pullback from the 131.00 hurdle during Monday’s Asian session.

However, Friday’s daily closing, the highest since early 2002, joins recently firmer MACD signals and upbeat RSI to keep USD/JPY buyers hopeful of overcoming the 131.00 key resistance.

Following that, the pair’s run-up towards the 61.8% Fibonacci Expansion (FE) of March-May moves, around 132.60, appears imminent.

In a case where USD/JPY remains firmer past 132.60, the buyers can aim at the year 2002 high surrounding 135.20.

Alternatively, a confluence of the 10-DMA and 20-DMA near 128.70-60, restricts the pair’s immediate pullback moves ahead of an upward sloping support line from early March, close to 127.95 by the press time.

Should USD/JPY prices drop below 127.95, May’s bottom surrounding 126.35 and March’s high of 125.10 will be in focus.

USD/JPY: Daily chart

Trend: Bullish