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.