- The USD/JPY looks set to scale 113.00 and move toward the July high of 113.18, having produced a bull flag breakout and a steady stream of higher lows along the ascending (bullish) 100-hour moving average (MA).
- The major moving averages – 50-hour, 100-hour, 200-hour – are located one above the other in favor of the bulls. Further, the 5-day and 10-day MAs are trending north indicating a short-term bullish setup.
- However, the bullish technical setup may fail if the global equities post sharp losses. That said, bullish invalidation is seen only below the 100-hour MA, currently located at 112.50.
Hourly chart
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Spot Rate: 112.87
Daily High: 112.98
Daily Low: 112.75
Trend: Bullish
R1: 113.00 (psychological hurdle)
R2: 113.18 (July high)
R3: 113.39 (January high)
Support
S1: 112.67 (50-hour MA)
S2: 112.50 (100-hour MA)
S3: 112.43 (support on the hourly chart)
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