USD/JPY technical analysis: Rises above 200-HMA, RSI favors further gains

USD/JPY is printing session highs above the 200-hour moving average (MA).
The 14-day RSI is reporting a descending channel breakout.

Omkar Godbole FXStreet Contributor

The USD/JPY pair is solidly bid at press time amid risk-on action in the Asian equity markets.

The currency pair is currently trading at 108.63 and is sitting well above the 200-hour moving average (MA) of 108.53.

The gains could be extended further toward the daily chart falling channel resistance, currently at 109.35, as the 14-day relative strength index (RSI) is now breaking higher from the descending triangle, having charted a bullish divergence (higher lows) in early June.

The bullish case, however, would weaken if the spot finds acceptance below Monday’s low of 108.31.

Daily chart

Trend: Bullish

Pivot points

1. R3 109.08
2. R2 108.9
3. R1 108.67
PP 108.49
1. S1 108.27
2. S2 108.08
3. S3 107.86

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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