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USD/JPY Price Analysis: Whipsaws within key HMA envelope below 135.00 on BoJ cues

USD/JPY remains indecisive after a volatile move, probes two-day downtrend.
BoJ Governor Nominee Ueda flashes mixed signals to fuel recent activity.
Sustained trading beyond 200-HMA, one-week-old support line keeps buyers hopeful.
50-HMA, ascending trend line from last Friday guard immediate upside.
USD/JPY bears run out of steam after the latest bout of volatility as the Yen pair remains well-anchored above the key support levels. However, immediate hurdles do challenge the recovery moves.

That said, the quote remains unchanged on a day near 134.65 after an almost 100-pip move on comments from Kazuo Ueda, the Japanese government’s nominee for Bank of Japan (BoJ) Governor.

Also read: BoJ Gov Nominee Ueda: Weak Yen benefits exports, inbound tourism and some service sectors

Even if the mixed signals from Ueda triggered the Yen pair’s volatility, the quote remained between the 200-Hour Moving Average (HMA) and the 50-HMA.

It’s worth noting, however, that the receding bearish bias of the MACD and the bounce in the RSI (14) line from oversold territory signals the USD/JPY pair’s further recovery.

Also keeping the buyers hopeful is the quote’s successful trading above the 200-HMA and a one-week-old ascending trend line, close to 134.00 and 134.40 in that order.

Meanwhile, the 50-HMA restricts the immediate upside of the USD/JPY pair to around 134.80.

Following that, the 135.00 round figure and an upward-sloping resistance line from the last Friday, close to 135.40 at the latest, could entertain the USD/JPY pair traders.

Overall, USD/JPY is likely to remain firmer but the upward trajectory appears bumpy.

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