USD/JPY Technical Analysis: Path of least resistance is to the upside

• USD/JPY is reporting losses, likely due to an uptick in the Japanese government bond yields and escalating US-China trade tensions.
• Still, the path of least resistance remains to the upside as the 100-hour moving average (MA) is holding above the 200-hour MA. Further, the 50-MA is also holding above the 100-hour MA and is trending north in favor of the bulls.
• The daily chart shows a bullish crossover between the 5-day and 10-day MA, meaning the short-term outlook has turned bullish.

Hourly chart

Spot Rate: 111.62

Daily HIgh: 111.73

Daily Low: 111.54

Trend: Bullish

Resistance

R1: 111.73 (session high)

R2: 112.15 (previous day’s high)

R3: 113.18 (July high)

Support

S1: 111.44 (5-day moving average)

S2: 111.00 (psychological support)

S3: 110.678 (50-day moving average)