- USD/JPY kickstarts the new trading session on a positive note.
- Pair finds support in the double bottom near 109.50 level.
- MACD holds onto the overbought zone with a neutral stance.
USD/JPY accumulates minor gains on the first day of the fresh trading week. The pair opened above the 110.00 mark and continued to push higher.
At the time of writing, USD/JPY is trading at 110.23, up 0.06% for the day.
On the daily chart, after making a fresh YTD high at 111.65 on July 2, USD/JPY came under selling pressure. The pair tested weekly lows near 109.50 but managed to close higher.
That said, if the price breaks 110.25 decisively, which is the previous day’s high, it could be able to test the 110.50 horizontal resistance level.
The ascending trendline from the lows of 107.47 acts as a defence for the bulls. A break of the bullish sloping line will further push the price higher toward the 110.80 horizontal resistance level.
The next area of resistance would be the high of July 5 in the vicinity of the 111.20 area.
On the flip side, the Moving Average Convergence Divergence (MACD) indicator is in an overbought zone with a neutral stance. Any downtick in the MACD could prompt the pair to move toward the south.
In doing so, the interim support would emerge at 50-day Simple Moving Average (SMA) at 109.84.
A daily close below the above level would motivate USD/JPY bears to retest Thursday’s low at 109.53.
Next, the market participants would look out for the 109.20 horizontal support level.
