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USD/JPY Price Analysis: The bulls target the 133.60 level prior to the BOJ
USD/JPY acquires bids to reestablish the daily high, reversing a two-day slump. The buyers are tested by the weekly horizontal resistance and the declining trend line from Tuesday. MACD and RSI indicate more rebound movements till the price remains above the 100-SMA.
It is largely predicted that BOJ would maintain its current monetary policy. During Friday's Asian session, USD/JPY extends the rebound from the weekly low while replenishing intraday highs around 133.30.
In doing so, the yen pair extends the rebound from the 100-day simple moving average while nearing a one-week-old horizontal resistance zone encompassing 133.50-60.
Given the RSI's comeback from oversold territory and the diminishing negative bias of the MACD, the USD/JPY exchange rate is expected to sustain its recent recovery.
However, a downward sloping resistance line from Tuesday around 133.95 and the 134.00 threshold will work as additional upside filters to test the pair buyers, in addition to the immediate 133.50-60 zone.
In addition, the Bank of Japan (BOJ) is anticipated to maintain its easy-money policy, which may add to USD/JPY upward gain.
Alternately, corrective movements might be elusive till the price remains above the 100-SMA level of 131.40.
After that, the 200-day simple moving average (SMA) and the swing high from early June, around 130.25-20, might test USD/JPY bearish.
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