USDJPY TESTING CRITICAL RESISTANCE
The USDJPY pair is staging a strong recovery, with price moving towards the key 111.00 level, after yesterday's strong ISM manufacturing report and upbeat United States core PCE data, helped lift the trading sentiment surround the U.S dollar index.
At present the USDJPY pair is testing the critical 110.79 resistance level, after printing a fresh weekly trading high of 110.91 during the Asian. USDJPY traders now look to the release of the July ADP jobs report.
The USDJPY pair remains bearish in the long and medium term, however the pair is currently bullish on a short-term trading basis.
Key technical support is found at the H1 time frame 100 period moving average, at 110.71 and the weekly time frame 50 period moving average, at 100.45. The USDJPY daily pivot point also offers further intraday support, at 110.33.
As the USDJPY moves towards the 111 level, a cluster of critical resistance awaits the pair. The H1 time frame 200 hour moving average is found at 111.05.
Above the 111.05 level, the USDJPY weekly pivot point is found at 111.15, with the 200-week moving average offering further resistance, at 111.32.