- The intraday downtick showed some resilience below 50% Fibo. level.
- Move beyond 108.60 resistance might inspire intraday bullish traders.
The USD/JPY pair witnessed some follow-through selling on Wednesday – marking its fifth day of a negative move in the previous six – and dropped to over one-week lows.
However, bulls continued showing some resilience below 50% Fibonacci level of the 112.40-104.45 downfall and assisted the pair to recover a major part of its early lost ground.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and turned out to be one of the key factors that attracted some dip-buying interest at lower levels.
A subsequent strength beyond the 108.60 horizontal zone might prompt some technical buying and set the stage for a fresh attempt towards conquering the 109.00 round-figure mark.
The mentioned handle nears the very important 200-day SMA, which if cleared decisively might be seen as a key trigger for bullish traders and might pave the way for additional gains.
On the flip side, any further downside now seems to find decent support near a five-month-old descending trend-line resistance breakpoint – around the 108.00-107.90 region.
Below the mentioned resistance-turned-support, near the 108.00 handle, the pair might turn vulnerable to accelerate the pullback further towards the 107.55 confluence region.
The latter comprises of 100-day SMA and 38.2% Fibo. level, which if broken decisively might negate any near-term bullish bias and open the room for a further near-term depreciating move.
USD/JPY daily chart
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