• USD/JPY trades higher around 146.20, retracing from recent losses.
• The monthly high could be the immediate resistance, following November’s high.
• 23.6% Fibo appears to be the key support aligned to 21-day EMA.

USD/JPY recovers from the previous day’s losses, trading higher around 146.20 at the time of writing during the Asian session on Wednesday. The pair registered losses due to the fall in the US Dollar (USD), which could be attributed to downbeat US Treasury yields and disappointing US economic data on Tuesday.

The pair could face the immediate barrier around the monthly high at 147.37 marked on Tuesday. A firm break above the latter could inspire the USD/JPY buyers to explore the area around the 148.00 psychological level, following November’s high at 148.82 level.

The 14-day Relative Strength Index (RSI) remains above 50, which suggests a bullish bias of the USD/JPY buyers. The Moving Average Convergence Divergence (MACD) line stays above the centerline and coincides with the signal line, which suggests that recent momentum is stronger.

On the flip side, the pair could meet the key support around the 14-day Exponential Moving Average (EMA) at 145.48, followed by the 23.6% Fibonacci retracement at 144.98 lined up with the 21-day EMA at 144.92.

A break below that level could put pressure on the USD/JPY pair to navigate around 38.2% Fibonacci retracement at 143.50.

In the short term, the underlying trend remains to be bullish as long as the USD/JPY stays above the 50-day EMA.

USD/JPY: Daily Chart