- The post-NFP USD buying interest lifted the USD/JPY pair back closer to weekly tops, around the 108.50 supply zone.
- The mentioned region coincides with a one-month-old descending trend-line and 200-period SMA on the 4-hourly chart.
A convincing breakthrough should act as a key trigger for bullish traders and now seems to accelerate the momentum further towards reclaiming the 109.00 round figure mark – coinciding with 50-day SMA.
A follow-through buying has the potential to continue fueling the positive momentum further towards testing the 109.60 supply zone before the pair aims towards the key 110.00 psychological mark.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and add credence to the bullish outlook, though are flashing overbought conditions on hourly charts.
The set-up clearly suggests that bulls are likely to take a brief pause near the mentioned barrier amid a deteriorating risk sentiment before gearing up for any further near-term appreciating move.
USD/JPY 4-hourly chart
-636979315836835602.png)
Share
