USD/JPY Technical Analysis: Set-up favours a move towards 55-DMA/61.8% Fibo. confluence hurdle

   “¢   The pair finally broke out of its multi-day consolidative trading range, held over the past one week or so, and jumped to fresh YTD tops during the mid-European session on Monday.

   “¢   A sustained move beyond the key 110.00 psychological mark was seen as a key trigger for intraday bullish traders and the latest leg of a sudden pickup over the past couple of hours.

   “¢   Technical indicators on the 4-hourly chart maintained their bullish bias and have also started gaining positive traction on the daily chart, supporting an extension of the positive momentum.

   “¢   The set-up now favours a move towards challenging an important confluence resistance – comprising of 55-day SMA and 61.8% Fibonacci retracement level of the 114.21-104.69 downfall.

   “¢   Despite the constructive outlook, slightly overbought conditions on the 1-hourly chart might turn out to be the only factor keeping a lid on any further up-move amid the prevalent risk-off mood.

USD/JPY daily chart