USD/JPY Price Analysis: Bulls can ignore pullback from 14-week-old resistance line
- USD/JPY prints mild losses while snapping a two-day winning streak, recently recovering from intraday low.
- Bullish MACD, 14-day-long support line and a sustained break of 50-day SMA favor buyers.
USD/JPY trims early-Asia losses while rising to 105.90 ahead of Friday’s European session. The yen pair took a U-turn from a multi-day-old resistance line the previous day. However, the resulted declines stay above 50-day SMA support amid bullish MACD.
As a result, buyers are waiting for entries and will not hesitate to refresh the monthly high of 106.10 if witnessing an upside clearance of 106.05 trend line resistance.
In doing so, the USD/JPY bulls will eye the August month’s peak surrounding 107.05 whereas the last month’s top of 106.55 can offer an intermediate halt during the rise.
Meanwhile, a downside break below the 50-day SMA level of 105.80 will have an opportunity to bounce from an upward sloping trend line from September 21, at 105.47 now.
In a case where the bears sneak around 105.45, the monthly low close to 104.95 and the September month’s trough of 104.00 will be in the spotlight.
USD/JPY daily chart
Trend: Pullback expected