USD/JPY Price Analysis: Clings to modest gains, bulls await a move beyond mid-109.00s

USD/JPY attracted some dip-buying near the 109.00 mark and moved back closer to session tops.
Sustained move beyond mid-109.00s would set the stage for some near-term appreciating move.
Break below the 109.00 mark will negate the constructive outlook and prompt aggressive selling.

Haresh Menghani FXStreet

The USD/JPY pair reversed an intraday dip to the 109.00 area and climbed to the top end of its intraday trading range during the early North American session. The pair was last seen hovering just below mid-109.00s, up around 0.15% for the day.

The underlying bullish sentiment in the financial markets continued undermining demand for the safe-haven Japanese yen and extended some support to the USD/JPY pair. That said, the prevalent US dollar selling bias might keep a lid on any meaningful gains for the major.

Looking at the technical picture, the 109.45-50 region has been capping the upside since Tuesday and should act as a pivotal point for short-term traders. Some follow-through buying has the potential to push the USD/JPY pair beyond weekly swing highs, around the 109.70 region.

Bulls might then aim back to reclaim the key 110.00 psychological mark before lifting the USD/JPY pair further towards the 110.55-60 resistance zone. The constructive outlook is reinforced by the fact that oscillators on the daily chart have just started gaining positive traction.

Hence, a subsequent strength towards the 110.55-60 resistance zone, en-route the 111.00 neighbourhood, or one-year tops touched in March, remains a distinct possibility.

On the flip side, the 109.00 round-figure mark now seems to have emerged as immediate strong support. Sustained weakness below might prompt some technical selling and accelerate the fall to the 108.65-60 support before the USD/JPY pair eventually drops to the 108.00 mark.

USD/JPY 1-hour chart

Technical levels to watch

USD/JPY

Overview
Today last price	109.34
Today Daily Change	0.10
Today Daily Change %	0.09
Today daily open	109.24

Trends
Daily SMA20	108.77
Daily SMA50	108.8
Daily SMA100	106.51
Daily SMA200	105.84

Levels
Previous Daily High	109.48
Previous Daily Low	109.14
Previous Weekly High	109.37
Previous Weekly Low	107.64
Previous Monthly High	110.85
Previous Monthly Low	107.48
Daily Fibonacci 38.2%	109.27
Daily Fibonacci 61.8%	109.35
Daily Pivot Point S1	109.09
Daily Pivot Point S2	108.95
Daily Pivot Point S3	108.76
Daily Pivot Point R1	109.43
Daily Pivot Point R2	109.63
Daily Pivot Point R3	109.77

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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