- The USD/JPY pair built on the previous session’s positive move.
- Multi-month-old ascending trend-line might cap further gains.
The USD/JPY pair gained some follow-through traction for the second consecutive session on Monday, with bulls making a fresh attempt to build on the momentum beyond the 109.00 handle.
The mentioned handle coincides with the very important 200-day SMA, above which the momentum could further get extended back towards the recent swing highs – around the 109.45-50 region.
This is closely followed by over three-month-old ascending trend-line resistance, which if cleared decisively might be seen as a key trigger for bullish traders and pave the way for additional gains.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and reinforce the constructive set-up, albeit slightly overbought conditions on hourly charts warrant some caution.
Hence, it will be prudent to wait for a sustained breakthrough the ascending trend-line resistance before positioning for any further appreciating move, possible beyond the key 110.00 psychological mark.
On the flip side, immediate support is now pegged near mid-108.00s, below which the pair might turn vulnerable and accelerate the fall towards testing sub- 108.00 levels (the 108.00-107.90 region).
USD/JPY daily chart
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