USD/JPY Price Analysis: Extends pullback from key hurdles below 111.00
|- USD/JPY bounces off intraday low, remains pressured around 15-month high.
- Bearish candlestick below important resistances backs further consolidation of gains.
- Two-month-old rising channel, bullish MACD keep buyers hopeful.
USD/JPY pares intraday losses around 110.85 as European traders prepare for Friday’s bell. The risk barometer pair jumped to the highest since March 2020 the previous day before closing with mild losses around 110.87.
In doing so, the quote not only reversed from the upper line of a short-term trend channel but also closed below a three-month-long horizontal hurdle. Furthermore, a daily bearish spinning top also favors intraday sellers of USD/JPY.
However, the pullback moves may fade around 110.70 and early month top near 110.30 amid bullish MACD.
Should the USD/JPY bears dominate past 110.30, the 110.00 psychological magnet and support line of the stated channel, close to 109.65, will be the key to watch.
Meanwhile, the 111.00 round figure and the channel’s resistance near 111.10 will keep challenging the short-term bulls. In a case where the USD/JPY prices rally beyond 111.10, a gradual run-up towards the year 2020 peak surrounding 112.25-30 can’t be ruled out.
USD/JPY daily chart
Trend: Pullback expected
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