USD/JPY Price Analysis: Bulls gearing up for a move towards multi-month ascending trend-line
- USD/JPY regains some positive traction on Thursday.
- The technical set-up remains tilted in favour of bulls.
Following the previous session's brief pause, the USD/JPY pair regained some positive traction on Thursday and remained well within the striking distance of multi-month tops set earlier this week.
Given that the overnight modest pullback attracted some dip-buying near the 109.70 strong horizontal resistance breakpoint now turned support, the set-up remains tilted in favour of bullish traders.
Moreover, the fact that the pair remains above its important moving averages – 50, 100 & 200-day SMA – further adds credence to the constructive outlook and support prospects for additional gains.
With oscillators on the daily chart holding in the positive territory, some follow-through buying has the potential to lift the pair to a five-month-old ascending trend-line resistance near the 110.80 region.
On the flip side, the 109.70 region might continue to protect the immediate downside, which if broken might negate the near-term bullish bias and prompt some aggressive long-unwinding trade.
The pair then might accelerate the corrective slide further towards the 109.35 intermediate horizontal support before eventually dropping to challenge the 50-day SMA support near the 109.00 handle.
USD/JPY daily chart