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• USD/JPY holds lower ground near intraday low after reversing from 50-SMA.
• 61.8% Fibonacci retracement level restricts immediate downside ahead of six-week-old support line, 200-SMA.
• Multiple hurdles toward the north stand tall to challenge Yen pair buyers past 50-SMA, oscillators favor further upside.

USD/JPY bulls struggle to keep the reins after snapping three-day downtrend the previous day. That said, the Yen pair retreats to 134.90 during early Monday, following an initial run-up to prod the 50-SMA hurdle, favored by the March month’s Monetary Policy Meeting Minutes from the Bank of Japan (BoJ).

Also read: BoJ Minutes: Several members said must be vigilant to risk inflation may accelerate more than expected

Even so, the Yen pair remains above the 61.8% Fibonacci retracement level of its March month downside, near 134.75, which in turn keeps the buyers hopeful. Adding strength to the upside bias are the bullish MACD signals and the near-50 RSI (14) line suggesting a continuation of the latest rebound from an upward-sloping support line from late March.

With this, the USD/JPY bulls appear well-set to cross the 50-SMA hurdle surrounding 135.25. However, lows marked during early March around 135.30-40 can challenge the pair’s further upside.

Also acting as the upside hurdle are the multiple levels around the 137.00 round figure, as well as double tops marked near 137.80-90. Furthermore, the 138.00 threshold acts as the last defense of the USD/JPY bears.

On the contrary, a downside break of the aforementioned support line, close to the 134.00 round figure, isn’t an open welcome to the Yen pair bears as the 200-SMA level of 133.40 can act as an additional filter to the south.

USD/JPY: Four-hour chart

Trend: Further upside expected