- USD/JPY is hovering around 136.00, a critical level for the bulls to extend their profits.
- A bullish restart occurs as USD/JPY retakes 137.00, with the bulls eyeing 140.00.
- Otherwise, the USD/JPY bears will gain the upper hand if the major currencies break below 136.00.
After hitting a new YTD high at 136.91, USD/JPY failed to breach the 137.00 figure, showing a recovery as the New York session progressed. At the time of writing, USD/JPY is trading at 135.85, 0.24% below its opening price.
USD/JPY’s bias is rising after the pair broke above the 100-day exponential moving average (EMA) last Friday. This exacerbated the rally above 136.00, a key price level for USD/JPY bulls preparing to launch an attack on 137.00. However, the pair remains vulnerable near his 136.00, with sellers trying to drag the price below the latter.
For a bullish continuation, USD/JPY should rise above 137.00 and open the door towards the 140.00 mark. However, USD/JPY will face some hurdles on its way north. The first supply area is the Dec 20 high of 137.47, followed by the Dec 16 high of 137.80 before testing the Nov 30 high of 139.89.