#USDJPY @ 136.733 -imp levels: pares the biggest daily loss in two weeks inside a bullish chart pattern.

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• USD/JPY pares the biggest daily loss in two weeks inside a bullish chart pattern.
• Firmer RSI adds strength to the bullish bias, 100-SMA offers additional hurdle.
• Convergence of 200-HMA, fortnight-old ascending trend line appears key support.

The pair currently trades last at 136.733.

The previous day high was 137.2 while the previous day low was 136.32. The daily 38.2% Fib levels comes at 136.66, expected to provide support. Similarly, the daily 61.8% fib level is at 136.86, expected to provide resistance.

USD/JPY picks up bids to refresh intraday high near 136.80 during Friday’s Asian session. In doing so, the yen pair advances inside a three-day-old bullish pennant.

The upside momentum also takes clues from the firmer RSI (14), not overbought.

However, a convergence of the stated pennant and the 100-HMA, near 137.00, appears a tough nut to crack for the USD/JPY buyers.

Following that, a rally towards refreshing the multi-year high marked in July at around 139.40 could be witnessed. It’s worth noting that the monthly high near 137.70 could act as a buffer during the run-up.

Meanwhile, a downside break of the pennant’s support line, at 136.50 by the press time, isn’t an open invitation to the USD/JPY bears.

The reason could be linked to the existence of the 200-HMA and an upward sloping support line from August 11, close to the 136.00 round figure.

In a case where the USD/JPY bears keep reins past 136.00, the early-month high near 135.60 could become an intermediate halt before directing the anticipated fall towards the monthly low near 130.40.

Trend: Further upside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 136.76 at the time of writing. Pair opened at 136.49 and is trading with a change of 0.20% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 134.64, 50 SMA 135.72, 100 SMA @ 132.51 and 200 SMA @ 124.25.

The previous day high was 137.2 while the previous day low was 136.32. The daily 38.2% Fib levels comes at 136.66, expected to provide support. Similarly, the daily 61.8% fib level is at 136.86, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 136.14, 135.79, 135.26
• Pivot resistance is noted at 137.02, 137.55, 137.9

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