USD/JPY Technical Analysis: Buyers look for entry beyond 1-week-old resistance trendline
|- USD/JPY stays above 200-bar SMA amid bullish MACD.
- Monthly high holds the key to 110.00.
- 50% of Fibonacci retracement acts as additional support.
USD/JPY remains positive above 200-bar SMA while taking the bids to 108.83 amid initial trading hours on Monday.
The pair nears a short-term falling resistance line, at 108.95, a break of which could escalate the recent recovery to the monthly high close to 109.50. However, May 30 top close to 109.95 and 110.00 round-figure could question the pair’s further upside.
In a case where buyers keep the reins beyond 110.00, May 21 high of 110.67 will come back on the chart.
Also supporting the price run-up is the bullish signal by the 12-bar Moving Average Convergence and Divergence (MACD) indicator.
Meanwhile, a downside break of 200-bar Simple Moving Average (SMA), at 108.40 now, can drag the quote to 50% Fibonacci retracement level of October-November upside, at 108.00.
Additionally, the monthly bottom surrounding 107.88 and 61.8% Fibonacci retracement level of 107.60 could entertain sellers afterward.
USD/JPY 4-hour chart
Trend: Bullish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.