- The USD/JPY pair managed to recover a major part of its early dip and is currently placed in the neutral territory, just below mid-108.00s.
- The intraday slide showed some resilience below 200-hour SMA, which should now act as a key pivotal point for the pair’s intraday move.
Given the overnight goodish bounce from 50% Fibo. level of the 106.78-109.00 up-move, the price action clearly points to some dip-buying interest at lower levels and support prospects for a further near-term appreciating move.
However, neutral technical indicators on hourly and daily charts haven’t been supportive of any firm near-term direction and hence, it would be prudent to wait for a strong follow-through buying before placing any fresh bullish bets.
Meanwhile, a sustained move beyond the 109.00 handle – tested earlier this week, will reaffirm the constructive outlook and accelerate the move towards 109.25 intermediate resistance en-route the 109.60-65 supply zone.
On the flip side, any meaningful pullback now seems to find some support near the 108.00 handle and is closely followed by the previous session’s swing lows – around the 107.85 region, which if broken might negate the positive outlook.
Below the mentioned support, the pair might turn vulnerable to retest the 107.55 support area (61.8% Fibo. level) before eventually falling to 107.15 horizontal level ahead of the 107.00 handle and multi-month lows – around the 106.80-75 region.
USD/JPY 1-hourly chart