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USD/JPY continues to trade in a limited intraday range around the 109.00 level and just below a major Fibonacci level, the 23.6% retracement of its latest bullish run. Valeria Bednarik, a Chief Analyst at FXStreet, takes a look at the USD/JPY technical picture.

Key quotes

“The USD/JPY 4-hour chart shows that it’s struggling with the 20 SMA and the 100 SMA, both converging with the price and lacking directional strength.”

“Technical indicators lack directional strength, the Momentum around its mid-line and the RSI at around 55, both indicating absent interest.” 

“The pair would need to advance beyond 109.38, the weekly high, to turn bullish, while the risk of a bearish extension will increase on a break below 108.25.”