- The USD/JPY has bounced off the trendline connecting the March 26 low and Aug. 21 low.
- The relative strength index (RSI) on the 4-hour chart continues to diverge in favor of the bulls. Further, MACD on the 4-hour chart has produced a bullish crossover.
- As a result, the pair could see a stronger move toward the 10-day exponential moving average (EMA), currently located at 112.53.
- A daily close below the 7-month trendline would strengthen the bear grip.
Spot Rate: 111.90
Daily High: 111.94
Daily Low: 111.73
R1: 112.11 (50-day EMA)
R2: 112.51 (10-day EMA)
R3: 112.74 (38.2% Fib R of 114.55/111.62)
S1: 111.70 (rising trendline)
S2: 111.41 (100-day EMA)
S3: 111.00 (psychological support)