USD/JPY technical analysis: Bulls gearing up for further near-term appreciating move

The USD/JPY pair continued with its struggle to extend the positive momentum further beyond the 107.00 handle and remained confined in a narrow trading band through the early North-American session.
 
Despite the subdued price action, the pair might have already formed a strong base above 200-period SMA on the 4-hourly chart and seems poised to build on its recent recovery move from multi-month lows.
 
Meanwhile, technical indicators on hourly/daily charts maintained their bullish bias and further add credence to the near-term constructive set-up amid the prevalent risk-on mood and US-China trade optimism.
 
A follow-through up-move beyond last week's swing high - around the 107.20-25 region - will reaffirm the bullish outlook and set the stage for a further near-term appreciating move towards reclaiming the 108.00 handle.
 
The up-move could further get extended towards challenging 100-day SMA resistance, currently near the 108.35 region, before the pair eventually moves back above the 109.00 handle - levels not seen since early-August.
 
On the flip side, the 106.70 horizontal zone now seems to protect the immediate downside, which if broken might trigger aggressive technical selling and accelerate the slide back towards testing sub-106.00 level.

USD/JPY 4-hourly chart