- USD/JPY struggled to capitalize on the move beyond a three-month-old descending trend-line.
- The technical set-up warrants some caution before placing any aggressive directional bets.
The USD/JPY pair once again struggled to find acceptance above the 108.00 mark and witnessed a modest intraday pullback on the last trading day of the week.
Given the overnight breakthrough over three-week-old descending trend-line resistance, the near-term technical set-up seems tilted in favour of bullish traders.
However, oscillators on hourly/daily charts have been struggling to gain any meaningful positive traction and warrant some caution before placing fresh bullish bets.
Hence, it will be prudent to wait for a sustained strength beyond the 108.00-108.10 region before traders start positioning for any further near-term appreciating move.
Above the mentioned barrier, the pair is likely to surpass an intermediate resistance near mid-108.00s and the 108.75 region before aiming towards the 109.00 mark.
On the flip side, any meaningful slide is likely to find some support near the 107.15-10 region and is closely followed by monthly lows, around the 106.95-90 region.
Some follow-through weakness below the said horizontal support might be seen as a fresh trigger for bearish traders and pave the way for a slide towards sub-106.00 level.
USD/JPY 4-hourly chart
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Technical levels to watch
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