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  • USD/JPY attracts some dip-buying ahead of 50-hour SMA and moves back above 110.00 mark.
  • The near-term set-up remains tilted in favour of bulls and support prospects for further gains.

The USD/JPY pair quickly recovered around 80-85 pips from the early European session swing lows and has now moved back above the key 110.00 psychological mark.

The intraday corrective slide from near one-month tops found a decent support near the 109.35 reigon, ahead of 50-hour SMA, which should act as a key pivotal point for traders.

Looking at a slightly broader picture, the recent recovery witnessed over the past two weeks or so, from multi-year lows has been along a short-term ascending trend-channel.

The emergence of some dip-buying further adds credence to a well-established near-term bullish trend and support prospects for an extension of the recent appreciating move.

Meanwhile, oscillators on the daily chart have just started gaining some positive traction and reaffirm the near-term constructive outlook, which remains in favour of bulls.

Hence, some follow-through strength, back towards the 110.65-70 region en-route the 111.00 round-figure mark, now looks a distinct possibility amid improving global risk sentiment.

The momentum could further get extended beyond the Asian session swing high, around the 111.35 region, towards challenging the trend-channel resistance near the 111.80 zone.

USD/JPY 1-hourly chart

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Technical levels to watch