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USD/JPY - Chance for Bulls to Make a Stand

USD/JPY has been rallying for the past few months from a low around 104.65 in March to a high just above 113.00 in July. Then, price started to retreat against this bull run.

$USDJPY Daily Chart

(click to enlarge)

Pullback to Key Pivot:
- On the daily chart we can see that USD/JPY has pulled back to around $110 before finding support this week.
- Note that price is testing the 100- and 200-day simple moving averages (SMAs).
- Also the RSI was right around 40. 
- If the market is turning bullish, it should hold price above 110 and the daily RSI above 40. 
- Then a close above 111 market might open up the bull run back towards the 114-114.45 area.
- In fact, price bouncing off the moving averages would be known as a bullish slingshot. Which would make the 114-114.45 resistance area vulnerable.
- On the other hand, if price does not hold above 110, it would be likely that USD/JPY is simply still in a choppy consolidation mode, with the 108-108.15 area as a possible bearish target in the short-term. 

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