- USD/JPY remains sluggish after posting bullish candlestick above the key DMAs.
- Two-month-old horizontal area becomes a strong nut to crack for the buyers.
- Monthly low adds to the downside filters, bullish MACD backs the buyers.
USD/JPY aptly portrays the sluggish market conditions during early Friday, taking rounds to 110.40.
Even so, Thursday’s Doji candlestick and the pair’s sustained trading beyond 100 and 50-DMAs, amid bullish MACD signals, favor the buyers.
Though, a clear break of the broad 110.70–80 resistance zone, comprising multiple levels marked since June, becomes necessary for the USD/JPY to tighten the grips.
Following that, July’s peak of 111.70 and yearly high near 112.25 will be in focus.
Alternatively, 50-DMA and 100-DMA, near 110.20 and 109.70 in that order, restrict the USD/JPY pair’s short-term downside.
However, any further weakness past 100-DMA will be challenged by 109.30, the last month’s low near 109.00 and the monthly bottom surrounding 108.70.
USD/JPY: Daily chart
Trend: Further upside expected
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