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  • USD/JPY rebounds in tandem with the US Dollar.  
  • The price broke above critical bearish 50-HMA, eyes 100-HMA.
  • Hourly RSI stays bullish, suggesting more gains ahead of US GDP.

Broad-based US dollar rebound gathered pace in early Europe, putting a fresh bid under the USD/JPY, as the spot refreshes daily highs near 105.30. The greenback is retracing some of its post-dovish Fed losses, as investors reposition ahead of the US Q2 GDP data.

The near-term technical outlook points to additional upside, especially after the price crossed the bearish 50-hourly Simple Moving Average (HMA) from below, located at 105.11.

The hourly Relative Strength Index (RSI) inches higher around 62.50, suggesting that there is more room for gains.

The next upside target is aligned at the bearish 100-HMA at 105.42, which could cap the renewed uptick. Acceptance above the latter could open doors for a test of Tuesday’s high at 105.68.

Meanwhile, the recovery momentum will likely remain intact as long as the spot holds above the horizontal 21-HMA, now seen at 105.02. The four-month low of 104.77 could be put to test on a break below the 21-HMA support.

USD/JPY: Hourly chart

fxsoriginalUSD/JPY: Additional levels