USD/JPY Price Analysis: Bulls keep 108.00/10 on radars amid upbeat trade sentiment
|- USD/JPY prints four-day winning streak, still below multiple highs marked during mid-April.
- Optimism surrounding the gradual reopening of global economies seem to favor the pair off-late.
- 61.8% Fibonacci retracement adds strength to the upside barrier.
- A seven-day-old ascending trend line restricts immediate downside.
USD/JPY remains mildly bid around 107.83, up 0.11% on a day, during the pre-European session on Tuesday. In doing so, the yen pair rises for the fourth day in a row but lacks ability to cross multiple peaks registered since mid-April.
Also increasing the strength of the said resistance around 108.00/10 is the 61.8% Fibonacci retracement of the pair’s April month fall.
Though, short-term ascending trend line keeps buyers hopeful of clearing the key upside barrier and aim for April 10 top near 108.60,
During the quote’s further rise past-108.60, the previous month's peak near 109.40 will lure the buyers.
Meanwhile, a downside break below the said support line, at 107.53 now, could recall 107.00 rest-point on the chart.
However, 23.6% Fibonacci retracement and April 29 low, respectively near 106.80 and 106.35, could please the bears during additional weakness past-107.00.
USD/JPY four-hour chart
Trend: Further recovery expected.
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