- The USD/JPY pair’s overnight pullback managed to find decent support near a confluence support – comprising of 100-hour SMA and 23.6% Fibo. level of the 109.93-107.81 recent slide.
- The pair regained some traction on Tuesday and climbed back closer to over one-week tops, with bulls making a fresh attempt to extend the momentum further beyond 38.2% Fibo. level.
Meanwhile, technical indicators on hourly charts managed to hold with a mild positive bias but are yet to catch up with the recent up-move on the daily chart, warranting some caution before placing any aggressive bullish bets.
Hence, any subsequent up-move seems more likely to confront a stiff resistance, rather attract some fresh selling near another confluence barrier – comprising of 50% Fibo. level and one-week-old ascending trend-line.
On the flip side, a convincing break below the overnight swing low, around the 108.30 region, will point to the resumption of the pair’s well-established near-term bearish trend and accelerate the slide back towards sub-108.00 level.
USD/JPY 1-hourly chart
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