- USD/JPY above 10-day SMA; 106.47 Monday high
- Falling trendline from June 05 under attack from bulls
- 105.3 offers immediate support in the up-move
USD/JPY is inching up with 0.13 Percent gain, trading near 106.10, in the pre-European session today.
The Monday trading had pushed the pair above the 10-day SMA for the first time in two weeks. The new level is helping the recovery from the lowest quote since March 12 and is challenging a short-term descending trendline.
106.75 is the immediate resistance offered by this trendline, with potential earlier selling pressure to emerge at lows posted in June and July – around 106.55/60.
A close above these levels and successful prints above July top close – 108.15 can strengthen the bull case with more momentum.
But, a fall below the current 10-day SMA of 105.82 can weaken the pair to 105.30 initially before testing the five-month low near 104.2.