USD/JPY Technical Analysis: Set-up favours bullish traders, move beyond 109.00 mark awaited

Fresh US-China trade optimism helped regain traction on Monday.
The pair has now moved beyond a symmetrical triangle resistance.
Some follow-through buying should pave the way for further gains.

Haresh Menghani FXStreet

The USD/JPY pair caught some fresh bids on the first day of a new trading week and finally broke through its recent range-bound price action between two converging trend-lines, which constituted towards the formation of a symmetrical triangle on the daily chart.

Against the backdrop of the pair's recent strong recovery from multi-year lows, the mentioned triangle further collaborated towards the formation of a bullish pennant chart pattern and support prospects for a further appreciating move amid renewed US-China trade optimism.

Meanwhile, technical indicators on the mentioned chart have again started gaining positive traction and further reinforce the constructive set-up, albeit traders are likely to wait for a sustained move beyond the very important 200-day SMA before placing any fresh bullish bets.

Some follow-through buying beyond the mentioned barrier, currently near the 109.00 handle for a move towards retesting monthly swing highs, around mid-109.00s, before the pair eventually aims towards reclaiming the key 110.00 psychological mark.

On the flip side, immediate support is pegged near the 108.70-60 region and is closely followed by the lower end of the symmetrical triangle, around the 108.35-30 region, which if broken might negate any near-term bullish bias and prompt some aggressive selling.

The pair then could slide further towards testing sub-108.00 levels (monthly lows), below which the downward trajectory could further get extended towards its next major support near the 107.00 round-figure mark with some intermediate support near the 107.55 region.

USD/JPY daily chart

USD/JPY

Overview
Today last price	108.88
Today Daily Change	0.25
Today Daily Change %	0.23
Today daily open	108.63

Trends
Daily SMA20	108.76
Daily SMA50	108.29
Daily SMA100	107.72
Daily SMA200	108.96

Levels
Previous Daily High	108.73
Previous Daily Low	108.47
Previous Weekly High	109.08
Previous Weekly Low	108.28
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	108.63
Daily Fibonacci 61.8%	108.57
Daily Pivot Point S1	108.49
Daily Pivot Point S2	108.35
Daily Pivot Point S3	108.23
Daily Pivot Point R1	108.75
Daily Pivot Point R2	108.87
Daily Pivot Point R3	109.01

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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