USD/JPY technical analysis: Bulls await a sustained move beyond 106.00 mark, 100-hour SMA
- The USD/JPY pair extended its sideways consolidative price action through the early North-American session and remained confined in a narrow band below the 106.00 mark.
- The mentioned handle nears 100-hour SMA, which if cleared decisively might be seen as a key trigger for bullish traders and set the stage for a further near-term appreciating move.
A sustained move beyond the said resistance might now assist the pair to surpass the 106.25 intermediate resistance and move back towards the 106.70-75 supply zone before eventually darting towards the 107.00 handle ahead of the next major hurdle near the 107.30-35 region.
However, technical indicators on the 1-hourly chart have just started moving in the positive territory but struggled to gain traction on 4-hourly/daily charts, warranting caution before aggressively positioning for any further near-term appreciating move.
Meanwhile, the downside is likely to remain cushioned by a support near mid-105.00s, below which the pair might turn vulnerable to slide further towards 105.30-25 intermediate support en-route the key 105.00 psychological mark and multi-year lows - around the 104.50-45 region.
USD/JPY 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
