USD/JPY technical analysis: 109.20/15 remains on seller’s radar unless 110.55/60 breaks

Sustained trading under important resistance portrays pair’s weakness.
Sellers can target near-term horizontal support during downside.

Anil Panchal FXStreet

The USD/JPY pair is on the bids near 109.50 ahead of Europe open on Monday.

The 110.55/60 resistance-confluence including 100-day simple moving average (SMA) and 23.6% Fibonacci retracement of January to April rise acts as strong upside cap. Though, 109.80 and 110.30 could entertain buyers during intermediate increase.

Should prices rally past-110.60, 111.00, 111.80 and April month top near 112.40 could be on the bulls’ radar.

Alternatively, multiple lows have been limiting the pair’s downside around 109.20/15 since the year’s start, which if ignored could rely on oversold levels of 14-day relative strength index (RSI) to visit 50% Fibonacci retracement near 108.60.

Given the pair’s extended south-run under 108.60, 108.00 and 107.50 becomes important to watch.

USD/JPY daily chart

Trend: Pullback expected

1. R3 110.08
2. R2 109.91
3. R1 109.61
PP 109.44
1. S1 109.13
2. S2 108.97
3. S3 108.66

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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