USD/JPY technical analysis: Spikes to 2-week tops, seems poised to test 110.80-85 supply zone

   •  After yesterday's intraday pullback and a subsequent rebound from 100-hour EMA, the USD/JPY pair regained positive traction on Tuesday and climbed to two-week tops in the last hour.

   •  A sustained move beyond 110.25 horizontal resistance was seen as a key trigger for intraday bullish traders amid improving risk sentiment and behind the latest leg of a sudden pickup.

Bullish technical indicators on hourly charts remained supportive of the intraday positive move. However, oscillators on the daily chart are yet to catch up with the ongoing recovery and might turn out to be the only factor keeping a lid on any runaway rally. 

Hence, any subsequent up-move seems more likely to confront some stiff resistance near the 110.80-85 area, which if cleared decisively would set the stage for a further appreciating move towards the very important 200-day SMA, currently near the 111.45 region.

On the flip side, the 110.25 level, closely followed by the key 110.00 psychological mark - also coinciding with 100-hour EMA, remain immediate support to defend, below which the pair might turn vulnerable to head back towards challenging the 109.00 handle.

USD/JPY 1-hourly chart