USD/JPY Price Analysis: Prints long-tailed candle on 10-day MA

USD/JPY has faded the drop below the 10-day moving average.
The pair could challenge higher hurdles with the S&P 500 futures flashing green.

Omkar Godbole FXStreet Contributor

USD/JPY is currently trading largely unchanged on the day at 108.84, having hit a low of 109.72 in early Asia.

The recovery has taken the shape of a long-tailed candle on the daily chart. Notably, the bullish candle has appeared at the ascending 10-day average support and suggests the path of least resistance is to the downside.

The pair could challenge last week's high of 110.13 and may break higher if the mild risk-on in the equity markets seen at press time gathers steam, sending the safe-haven JPY lower.

A violation at 110.13 would expose the 2020 high of 110.29 reached on Jan. 17.

On the downside, acceptance under 109.62 (Feb. 13 low) would imply the rally from the Jan. 31 low of 108.31 has made a temporary top and could bring a deeper slide to 109.00.

Daily chart

Trend: Bullish

Technical levels

USD/JPY

Overview
Today last price	109.84
Today Daily Change	0.05
Today Daily Change %	0.05
Today daily open	109.78

Trends
Daily SMA20	109.49
Daily SMA50	109.34
Daily SMA100	108.94
Daily SMA200	108.38

Levels
Previous Daily High	109.91
Previous Daily Low	109.7
Previous Weekly High	110.14
Previous Weekly Low	109.56
Previous Monthly High	110.29
Previous Monthly Low	107.65
Daily Fibonacci 38.2%	109.78
Daily Fibonacci 61.8%	109.83
Daily Pivot Point S1	109.68
Daily Pivot Point S2	109.58
Daily Pivot Point S3	109.47
Daily Pivot Point R1	109.9
Daily Pivot Point R2	110.01
Daily Pivot Point R3	110.11

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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