USD/JPY Price Analysis: Refreshes session tops, eyeing a move beyond 105.00 mark
|- USD/JPY edged higher through the early North American session on Monday.
- Intraday positive move stalls near a multi-day-old ascending channel resistance.
- Oscillators on the daily chart warrant some caution for aggressive bullish traders.
The USD/JPY pair refreshed daily tops during the early North American session, with bulls now looking to build on the momentum further beyond the key 105.00 psychological mark. The mentioned level marks the top boundary of a near one-week-old ascending trend-channel, which if cleared decisively will be seen as a fresh trigger for bullish traders.
Meanwhile, technical indicators on hourly charts have been gaining positive traction and reinforced the constructive outlook. However, oscillators on the daily chart – through have recovered from the bearish territory – are yet to confirm the bullish bias and warrant some caution before positioning for any further near-term appreciating move.
That said, a sustained move beyond might trigger a fresh bout of a short-covering move and push the USD/JPY pair towards mid-105.000s, with some intermediate resistance near the 105.30 region.
On the flip side, the 104.80 region now seems to have emerged as immediate support, below which the USD/JPY pair could slide back to retest daily lows, around the 104.65 region. The latter coincides with the trend-channel support and should now act as a key pivotal point for traders and help determine the pair's near-term trajectory.
A convincing breakthrough will negate any near-term positive bias and turn the USD/JPY pair vulnerable to accelerate the slide back towards the 104.35-30 region. Bears might then aim to challenge September monthly lows, near the 104.00 mark. Some follow-through selling should pave the way for an extension of the downward trajectory towards the 103.10-103.00 zone.
USD/JPY 1-hourly chart
Technical levels to watch
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