- The USD/JPY pair spiked to fresh session tops – around the 106.40 region – during the early North-American session, albeit quickly retreated around 40-pips in the last hour.
- The strong intraday recovery of over 150-pips faltered near 100-hour EMA on the 4-hourly chart, which should now act as a key pivotal point for the pair’s near-term trajectory.
Meanwhile, technical indicators on the 1-hourly chart have been gaining positive traction and also recovered from the negative territory on the 4-hourly chart. However, oscillators on the daily chart maintained their bearish bias and seemed to be the only factor keeping a lid on any further up-move.
Hence, it will be prudent to wait for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move beyond the 106.70-75 supply zone towards reclaiming the 107.00 round figure mark en-route the next major hurdle near the 107.30-35 region.
On the flip side, the 105.90 level now seems to protect the immediate downside, below which the pair might turn vulnerable to slide towards 105.30-25 support zone before eventually dropping back to challenge the key 105.00 psychological mark ahead of multi-year lows – around the 104.50-45 region.
USD/JPY 4-hourly chart
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