After a red Monday, we can see that USD/JPY was on a rise since then. From the mid-term perspective, the pair continues to trade above the upwards moving support line, drawn from the 29th of May. Also, we can see that USD/JPY is getting its support from the short-term uptrend line taken from the Tuesday low. This shows that the bulls are still looking confident in driving the pair a bit higher. That said, they might lose a bit of steam around the key area of resistance at 110.90, marked by the high of the 15th of June.
Until the aforementioned uptrend line is broken, we remain positive on USD/JPY. A break above the 110.90 level could open the door for some higher levels that were seen in May. On its way towards those levels, the pair could meet the 111.20 area first and then eventually the 111.40 zone, marked by the highest point of May.
The RSI and the MACD are currently supporting this scenario, as the RSI continues to push higher above the 50 line, and the MACD is above both its zero and trigger lines.
As mentioned above, we remain bullish for the short run as long as the short-term trendline is intact. If the line get’s broken, then we will aim for the recent lows that we have seen this week. The first good area of support could be around the 110.15 level, a break of which could send USD/JPY towards the 109.70 level. Slightly below that lies the previously mentioned upwards moving support line drawn from the low of the 29th of May, which could act as a strong area of support again.
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