• USD/JPY stays firmer at the highest levels in over a week, prints three-day uptrend.
• Clear upside break of key moving averages, fortnight-old horizontal resistance favors Yen pair buyers.
• 50-HMA pierces off 200-HMA from below, suggesting further upside of the USD/JPY pair.
• Overbought RSI (14) line, two-week-long horizontal area prod USD/JPY bulls.

USD/JPY picks up bids to remain firmer around 136.00, printing a three-day uptrend at a one-week high during early Monday.

In doing so, the Yen pair cheers the previous day’s upside break of a horizontal area comprising multiple levels marked since April 28, close to 135.50, as well as a successful upside break of the 200-Hour Moving Average (HMA) level of near 134.90 at the latest.

However, an 11-day-old horizontal resistance zone joins the overbought RSI (14) line and sluggish MACD signals to prod the USD/JPY bulls below the 136.40-45 resistance area.

In a case where the Yen pair buyers ignore the aforementioned negatives to the USD/JPY bulls, the odds of witnessing a rally towards the previous monthly high of around 137.80 and the yearly top marked in March near 137.90, quickly followed by the 138.00 threshold, can’t be ruled out.

Meanwhile, a downside break of the stated HMAs, near 134.90-80, isn’t an open invitation to the USD/JPY bears as an upward-sloping support line from April 26, close to 134.00, may act as the last defense of the buyers.

Overall, USD/JPY may witness further upside but the room towards the north appears limited.

USD/JPY: Hourly chart

Trend: Limited upside expected