USD/JPY Technical Analysis: 15-min chart shows a bull flag breakout

• The bull flag breakout seen in the 15-minute chart yesterday indicates the bulls will likely capitalize on the pair’s close above the all-important 200-day moving average hurdle.
• Thus, USD/JPY could rise to 110.67 (resistance of trendline sloping downwards from the May 21 high and June 15 high).
• However, the yield differential continues to drop in the USD-negative manner. So, sustainability of gains is under question.

15-minute chart

Spot Rate: 110.27

Daily High: 110.30

Daily Low: 109.97

Trend: Bullish

Resistance

R1: 110.49 (previous day’s high)

R2: 110.67 (trending hurdle)

R3: 110.90 (June 15 high)

Support

S1: 110.19 (200-day MA)

S2: 109.74 (50-day MA + rising trendline from March 26 low)

S3: 109.37 (June 25 low)