- USD/JPY reversed from 108.48/50 horizontal-resistance.
- 200-bar EMA, support-line of short-term rising channel limit further weakness.
Although 108.48/50 horizontal resistance triggered the USD/JPY pair’s pullback, prices are still above key short-term support confluence while taking the bids to 107.80 on early Wednesday.
While 108.20 can offer an intermediate halt during the pair’s another confrontation to 108.48/50 area, a successful break above the same might not refrain from challenging resistance-line of the one-month-old rising channel, near 109.30.
It should be noted that 12-bar moving average convergence and divergence (MACD) flashes a bearish signal and could direct sellers to again aim for 107.45/40 support-confluence that includes 200-bar exponential moving average (EMA) and lower-line of the aforementioned channel.
Further during the pair’s declines below 107.40, August 23 high nearing 106.70 will become bears’ favorite.
USD/JPY 4-hour chart
Trend: pullback expected
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