- USD/JPY stays above 200-bar SMA amid bullish MACD.
- Monthly high holds the key to 110.00.
- 50% of Fibonacci retracement acts as additional support.
USD/JPY remains positive above 200-bar SMA while taking the bids to 108.83 amid initial trading hours on Monday.
The pair nears a short-term falling resistance line, at 108.95, a break of which could escalate the recent recovery to the monthly high close to 109.50. However, May 30 top close to 109.95 and 110.00 round-figure could question the pair’s further upside.
In a case where buyers keep the reins beyond 110.00, May 21 high of 110.67 will come back on the chart.
Also supporting the price run-up is the bullish signal by the 12-bar Moving Average Convergence and Divergence (MACD) indicator.
Meanwhile, a downside break of 200-bar Simple Moving Average (SMA), at 108.40 now, can drag the quote to 50% Fibonacci retracement level of October-November upside, at 108.00.
Additionally, the monthly bottom surrounding 107.88 and 61.8% Fibonacci retracement level of 107.60 could entertain sellers afterward.
USD/JPY 4-hour chart
Trend: Bullish
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