Search ForexCrunch
  • Finally manages to clear a key hurdle near the 106.70-75 horizontal zone.
  • Near-term set-up already seems to have turned in favour of bullish traders.

The USD/JPY pair added to the overnight strong gains and continued gaining positive traction for the second consecutive session on Thursday, hitting over three-week tops in the last hour.
Given that the pair has already found acceptance above the 106.70 heavy supply zone, a follow-through move beyond the 107.00 mark should pave the way for further appreciating move.
The mentioned handle is closely followed by resistance near the 107.15-20 region, above which the pair seems all set to aim towards testing the 107.75-80 resistance ahead of the 108.00 mark.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and further reinforced the bullish set-up, albeit slightly overbought conditions on hourly charts warrant caution.
Hence, it will be prudent to wait for some near-term consolidation or a sustained move beyond the said handle before initiating any fresh bullish positions amid the prevalent selling bias around the USD.
On the flip side, the resistance breakpoint – around the 106.70 level – now seems to act as an immediate support any subsequent slide might now be seen as a buying opportunity near the 106.40 region.

USD/JPY 1-hourly chart