#USDJPY @ 137.640 clings to mild gains near the highest levels since mid-December 2022., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• USD/JPY clings to mild gains near the highest levels since mid-December 2022.
• Sustained break of 100-DMA favors bulls to keep the reins.
• One-month-old ascending resistance line adds to the upside filters.

The pair currently trades last at 137.640.

The previous day high was 137.2 while the previous day low was 135.54. The daily 38.2% Fib levels comes at 136.56, expected to provide support. Similarly, the daily 61.8% fib level is at 136.17, expected to provide support.

USD/JPY buyers occupy the driver’s seat even as markets remain calm during early Wednesday, following a volatile end to Tuesday’s trading session. In doing so, the Yen pair makes rounds to the 137.40-50 area after rising to the highest levels since mid-December 2022.

It should be noted that the Yen pair’s latest run-up could be linked to a successful upside break of the 100-DMA hurdle. However, the 200-DMA level surrounding 137.45-50 restricts the quote’s immediate upside amid the overbought conditions of the RSI (14).

Even if the USD/JPY bulls manage to cross the stated key moving average, an upward-sloping resistance line from early February, near 138.35 by the press time, could challenge the pair’s further advances.

In a case where the Yen pair bulls ignore the RSI conditions and keep the controls past the aforementioned resistance line, the 50% Fibonacci retracement level of its downturn from October 2022 to January 2023, near 139.60, may act as an additional upside filter.

Meanwhile, the 38.2% Fibonacci retracement level and the 100-DMA, respectively near 136.70 and 136.25, restrict short-term USD/JPY downside.

Following that, a one-month-old ascending support line, near 135.45 at the latest, will be crucial for the bears to watch.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 137.34 at the time of writing. Pair opened at 137.14 and is trading with a change of 0.15% % .

The pair is trading above its 20 Daily moving average @ 134.57, above its 50 Daily moving average @ 132.22 , above its 100 Daily moving average @ 136.38 and below its 200 Daily moving average @ 137.4

The previous day high was 137.2 while the previous day low was 135.54. The daily 38.2% Fib levels comes at 136.56, expected to provide support. Similarly, the daily 61.8% fib level is at 136.17, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 136.06, 134.97, 134.4
• Pivot resistance is noted at 137.71, 138.28, 139.37

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