• USDJPY picks up bids to extend the week-start rebound from 2.5-month low.
• Clear break of 50-HMA, two-day-old descending trend line keeps buyers hopeful.
• Confluence of 100-HMA, Friday’s peak tests further upside momentum.

USDJPY stays on the front foot for the second consecutive day after declining to the lowest levels since late August, up 0.55% intraday near 140.45 during early Tuesday morning in Europe.

The Yen pair’s recovery moves could be linked to its ability to cross a short-term key resistance, now support, surrounding 140.00, comprising a downward-sloping trend line from Friday and the 50-HMA. Also favoring the advances are the bullish MACD signals.

With this, the USDJPY buyers are likely to keep the reins and extend the week-start rebound from an 11-week low.

However, the convergence of the 100-HMA and November 11 peak offers a tough nut to crack for the bulls around 142.50-55.

Following that, a run-up towards the top, marked the late last week around 146.80, should gain the market’s attention. It’s worth noting that October’s low near 145.10 may act as a validation point for the USDJPY pair’s upside past 142.55.

Meanwhile, the sellers need to wait for a clear downside break of the 140.00 resistance-turned-support confluence.

In that case, July’s high near 139.40 and the monthly low near 138.50 could lure the USDJPY bears.

USDJPY: Hourly chart

Trend: Limited upside expected