- Quickly reverses an early dip and climbs to session tops.
- Bulls are likely to wait for a move beyond 109.00 level.
The USD/JPY pair built on a goodish intraday bounce from two-day lows and is currently placed near the top end of its daily trading range, around the 108.80 region.
A turnaround in the risk sentiment, reinforced by a pickup in the US Treasury bond yields, weighed on the Japanese yen’s safe-haven status and remained supportive.
The uptick has now lifted the pair back above 100-hour SMA, which might be seen as a key trigger for bullish traders and support prospects for additional intraday gains.
Meanwhile, oscillators on the daily chart maintained their bullish bias and have again started gaining positive traction on hourly charts, reinforcing the constructive set-up.
However, it will be prudent to wait for a sustained move beyond the very important 200-day SMA, or the 109.00 handle, before positioning for any further appreciating move.
Above the mentioned barrier, the pair is likely to aim towards monthly tops, around the mid-109.00s, before eventually darting towards the key 110.00 psychological mark.
USD/JPY 1-hourly chart
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