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  • The USD/JPY pair built on its recent bounce from multi-month lows and continued gaining traction for the third consecutive session on Tuesday, climbing to six-week tops near the 109.00 mark.
  • The mentioned handle marks a confluence region – comprising of 50-day SMA and 38.2% Fibo. level of the 112.40-106.78 recent downfall, which should now act as a key trigger for bullish traders.

Given that the pair has already found acceptance above the 108.65-70 supply zone, bullish oscillators on hourly/daily charts support prospects for an eventual breakthrough the mentioned barrier and extension of the near-term appreciating move.  

Subsequent up-move is likely to confront some resistance near the 109.25-30 region and is followed by 50% Fibo. level – around the 109.55-60 region, above which the pair seems all set to aim towards reclaiming the key 110.00 psychological mark.

Alternatively, any rejection slide from the current hurdle now seems to find immediate support near the 108.70-65 resistance breakpoint, which if broken might prompt some technical selling and accelerate the slide back towards the 108.00 round figure mark.

USD/JPY daily chart