USD/JPY technical analysis: Bulls await a sustained breakthrough 106.70 key barrier

The USD/JPY pair rallied over 30-pips from the early European session lows and is currently placed at the top end of its daily trading range, challenging 100-period EMA on the 4-hourly chart.
The said region has been acting as a strong resistance over the past 1-1/2 week and should act as a key pivotal point, which might help traders to determine the pair's near-term trajectory.

Haresh Menghani FXStreet

Meanwhile, technical indicators on the daily chart have been recovering from the bearish territory and gaining some positive traction on hourly charts, supporting prospects for an extension of the recent recovery move from multi-month lows set last week.

Sustained breakthrough the 106.70 region - also coinciding with 38.2% Fibo. level of the 109.32-105.05 recent downfall - will reaffirm the bullish bias and set the stage for a move back towards reclaiming the 107.00 handle en-route the 107.20 resistance zone.

The momentum could further get extended towards mid-107.000s en-route 61.8% Fibo. level - around the 107.70-75 region - which if cleared will negate any bearish bias and lift the pair further beyond the 108.00 handle - towards the 108.45-50 supply zone

On the flip side, the 106.20-15 horizontal zone now seems to have emerged as an immediate strong support, below which the pair might turn vulnerable to head back towards challenging the 105.00 handle with some intermediate support near the 105.65 region.

USD/JPY 4-hourly chart

USD/JPY

Overview
Today last price	106.59
Today Daily Change	-0.03
Today Daily Change %	-0.03
Today daily open	106.62

Trends
Daily SMA20	106.89
Daily SMA50	107.57
Daily SMA100	108.98
Daily SMA200	109.98

Levels
Previous Daily High	106.65
Previous Daily Low	106.22
Previous Weekly High	106.98
Previous Weekly Low	105.05
Previous Monthly High	109.01
Previous Monthly Low	107.21
Daily Fibonacci 38.2%	106.48
Daily Fibonacci 61.8%	106.38
Daily Pivot Point S1	106.35
Daily Pivot Point S2	106.07
Daily Pivot Point S3	105.92
Daily Pivot Point R1	106.77
Daily Pivot Point R2	106.92
Daily Pivot Point R3	107.2

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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