USD/JPY Technical Analysis: Hits 8-month tops, bulls eyeing a move beyond 110.00 handle
- USD/JPY continues gaining traction on the first day of a new trading week.
- Move beyond 109.70 region might be seen as a key trigger for bullish traders.
- The stage seems set for a possible move towards testing the 110.80 region.
The USD/JPY pair built on last week's strong recovery move from three-month lows and continued gaining some follow-through traction on the first day of a new trading week.
The momentum – marking the fourth day of the positive move in the previous five – has now lifted the pair to near eight-month tops and closer to the key 110.00 psychological mark.
A sustained move beyond the 109.70 strong horizontal resistance might now be seen as a key trigger for bullish traders and might have already set the stage for a further appreciating move.
This coupled with the fact that the pair remains well above its important moving averages – 50, 100 & 200-day SMA – further adds credence to the near-term constructive outlook.
Meanwhile, technical indicators on the daily chart have been gaining positive momentum and are still far from being in the overbought territory, further supporting prospects for additional gains.
Hence, some follow-through positive move, possibly towards testing a five-month-old ascending trend-line resistance around the 110.80 region, now looks a distinct possibility.
USD/JPY daily chart