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  • The bull flag breakout in the USD/JPY, as see in the hourly chart, indicates a resumption of the rally from the Sept. 20 low of 112.04 and could yield re-test of Friday’s high of 112.87.
  • The 50-hour, 100-hour and 200-hour moving averages (MAs) are also trending north in favor of the bulls.
  • The bull flag breakout also adds credence to short-term bullish setup, as indicated by the ascending 5-day and 10-day moving averages (MAs).

Hourly chart

Spot Rate: 112.58

Daily High: 112.63

Daily Low: 112.40

Trend: Bullish

Resistance

R1: 112.87 (Fri’s high)

R2: 113.00 (psychological hurdle)

R3: 113.18 (July 19 high)

Support

S1: 112.45 (5-day moving average)

S2: 112.05 (200-hour moving average)

S3: 111.86 (5-week moving average)