USD/JPY technical analysis: Subsequent dip towards mid-107.00s might still seen as a buying opportunity
|- BoJ’s decision to maintain status-quo prompted some long-unwinding trade.
- The near-term technical set-up still seems tilted in favour of bullish traders.
The USD/JPY pair witnessed some intraday pullback from seven-week tops in reaction to the BoJ's decision to maintain status-quo and retreated farther below the 108.00 round-figure mark, albeit showed some resilience at lower levels. The mentioned handle marks 100-day SMA resistance breakpoint, which is followed by the weekly bearish gap opening swing lows support near the 107.50-45 region.
The latter coincides with 23.6% Fibo. level of the recent strong recovery from a multi-year low level of 104.45 to the post-FOMC swing high near mid-108.00s set in the previous session, which if broken might be seen as a key trigger for bearish traders and set the stage for the resumption of the pair's prior/well-established bearish trend back towards testing sub-107.00 levels in the near-term.
Meanwhile, technical indicators on the daily chart have been losing positive traction but maintained their bullish bias, supporting prospects for the emergence of dip-buying interest. Hence, any subsequent slide back towards the mentioned support, near mid-107.00s, might still be seen as an opportunity to initiate some fresh bullish positions for an eventual move towards testing the very important 200-day SMA.
The overnight swing high - around the 108.50 region - might act as an intermediate resistance ahead of the 109.00 handle, above which the pair is likely to accelerate the positive momentum further towards its next major hurdle near the 109.40 region.
USD/JPY daily chart
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