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Fan Yang

USD/JPY - Bullish Momentum Established; Monitor 110

USD/JPY is likely going for another bull run, unless it get's rejected at 110. 

$USDJPY Daily Chart

(click to enlarge)

Bullish Confirmation:
- The daily chart shows a prevailing bearish swing that came down to 104.65 before a rebound.
- If this rally stalled under 110, I would have remained bearish on USD/JPY. 
- But a break above a falling trendline and the moving averages as well as 110 gave mixed signals.
- After last week's dip back to test the area around 108.15, USD/JPY found support. This suggests bulls are now back in control.
- Also note that price bounded off the 100- and 50-day simple moving averages (SMAs).
- Furthermore, the daily RSI had pushed above 70, and just held above 40, which suggests the development of bullish momentum.
Pivot at 110:
- The 110 pivot comes into play again. If this level acts as resistance and price retreats, I would wait for more price action to assess direction.
- A break above 110 on the other hand would support the bullish outlook, with the 112, and then, the 114.45 area in sight.

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