USD/JPY Technical Analysis: Recovers early lost ground, bulls trying to regain control
• Despite the prevalent USD selling bias, the pair showed some resilience near a short-term ascending trend-line support and has now managed to recover the early lost ground.
• With technical indicators on the 1-hourly chart gaining positive momentum, a move back above 200-hour SMA might be seen as a key trigger for intraday bullish traders.
USD/JPY 1-hourly chart
• Looking at a slightly higher time frame, the pair’s inability to find acceptance below 2-1/2 month old ascending trend-line suggests bearish reluctance to place any aggressive bets.
• The set-up gradually seems to be shifting in favour of bullish traders and hence, a move back towards reclaiming the 112.00 handle now looks a distinct possibility.
• However, a convincing break below the mentioned support, currently near the 111.15 region, will negate the constructive outlook and prompt some fresh technical selling.