USD/JPY Price Analysis: Clings to gains near multi-day tops, above 105.00 mark

Stronger USD assisted USD/JPY to recover further from monthly lows touched earlier this week.
A strong pickup in the US bond yields was seen as a key factor that underpinned the greenback.
The set-up seems tilted in favour of bullish traders and supports prospects for additional gains.

Haresh Menghani FXStreet

The USD/JPY pair gained strong positive traction on the last trading day of the week and climbed to levels beyond the key 105.00 psychological mark, or three-day tops. Bulls, however, seemed struggling to find acceptance above 200-hour SMA and the momentum stalled near the 50% Fibonacci level of the 105.77-104.41 recent downfall.

Slightly overstretched RSI on the 1-hourly charts seemed to be the only factor holding bullish traders from placing fresh bets. Meanwhile, technical indicators on 4-hourly/daily charts have been gaining positive traction and are still far from being in the overbought conditions, supporting prospects for additional near-term gains.

The constructive outlook is further reinforced by a goodish pickup in the US Treasury bond yields, which underpinned the US dollar demand. Hence, a subsequent strength towards the 105.55 intermediate resistance, en-route multi-month tops, around the 105.75 region touched earlier this month, looks a distinct possibility.

On the flip side, immediate support is pegged near the 104.80 horizontal zone ahead of monthly swing lows, around the 104.40 region. Failure to defend the mentioned support levels will negate the bullish bias and prompt some aggressive technical selling. The USD/JPY pair might then turn vulnerable to test sub-104.00 levels.

USD/JPY 1-hourly chart

Technical levels to watch

USD/JPY

Overview
Today last price	105.09
Today Daily Change	0.35
Today Daily Change %	0.33
Today daily open	104.74

Trends
Daily SMA20	104.39
Daily SMA50	103.95
Daily SMA100	104.4
Daily SMA200	105.55

Levels
Previous Daily High	104.8
Previous Daily Low	104.55
Previous Weekly High	105.77
Previous Weekly Low	104.61
Previous Monthly High	104.94
Previous Monthly Low	102.59
Daily Fibonacci 38.2%	104.71
Daily Fibonacci 61.8%	104.65
Daily Pivot Point S1	104.59
Daily Pivot Point S2	104.44
Daily Pivot Point S3	104.34
Daily Pivot Point R1	104.85
Daily Pivot Point R2	104.95
Daily Pivot Point R3	105.1

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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