USD/JPY Price Analysis: Drops from short-term trendline resistance, 109.80 in focus
- USD/JPY pulls back from three-week high amid overbought RSI.
- The two-day-old support line can offer immediate rest, a bit broader trend line and 100-HMA will be the key afterward.
- Bulls can target February top during the fresh run-up.
Following its failure to cross a nine-day-old resistance line, USD/JPY drops from the monthly high to 110.22, down 0.55%, amid Friday’s Asian session.
The pair currently aims to revisit the short-term support line, at 109.80, as the RSI’s drop from overbought area favors further pullback.
However, an upward sloping trend line since March 09, at 107.90, followed by 100-Hour Simple Moving Average (HMA) near 107.70, can challenge the bears afterward.
Alternatively, buyers will aim for February month high near 112.25 during the fresh rise beyond 111.40.
USD/JPY hourly chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
